Global Factors influencing ASX stocks on 05 July 2023

On 05 July 2023, at AEST 11:10 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 13.30 points or 0.18%, and is currently trading at 7,265.70 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Information Technology and A-REIT sectors were the top 2 declining sectors, declining 0.54% and 0.42% in their index values.

On that note, let us look at a few global reasons impacting the stock market today:

1. Gold prices stabilized following modest overnight increases as investors adopted a cautious approach before releasing the Federal Reserve's June meeting minutes.

2. In contrast, copper prices edged downward due to concerns surrounding a potential resurgence of a trade dispute between the United States and China.

3. Thatcham Research stated on Wednesday that the absence of comprehensive data on electric vehicle (EV) batteries poses a persistent challenge for insurers, leading them to declare EVs as total losses even after minor accidents. This situation has the potential to hinder the wider adoption of EVs.

4. Companies scrambled to secure alternative supplies on Tuesday in response to China's decision to limit exports of two metals extensively utilized in semiconductors and electric vehicles. Certain industry suppliers expressed concerns about potential restrictions on rare earth exports, so the urgency in obtaining necessary resources heightened.

5. According to a private-sector survey conducted on Wednesday, Japan's service sector maintained a strong pace of growth in June. The easing of pandemic-related restrictions has revitalized consumer demand, contributing to this positive trend.

6. The Hang Seng is up by 0.57% and FTSE 100 is down by 0.10%.

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