Global Factors influencing ASX stocks on 05 June 2023

On 05 June 2023, at AEST 11:10 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 79.30 points or 1.11%, and is currently trading at 7,224.40 levels. All 11 sectors are trading higher along with the S&P/ASX 200. The Energy and Materials sectors were the top 2 gaining sectors, gaining 1.82% and 1.78% in their index values.

Also read: Mid-Market: S&P/ASX 200 Rallying Today By More Than 1%; All 11 Sectors Are In Green

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

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 1.07%, 0.73%, 1.45%, and 2.12% respectively.

2. Oil prices surged in early Asian trade as a result of Saudi Arabia's commitment to substantial production cuts scheduled for July. Furthermore, the Organization of Petroleum Exporting Countries and its allies reached a consensus to extend supply cuts until 2024.

3. The debt ceiling deal negotiated by US House of Representatives Speaker Kevin McCarthy with Democratic President Joe Biden earned him praise on Sunday. Nevertheless, a prominent conservative House member expressed doubts about McCarthy's credibility, potentially leading some Republicans to contemplate his removal as the top Republican in Congress.

4. According to a private-sector survey conducted today, Japan's service sector experienced a remarkable expansion in May. This growth can be attributed to a rebound in overseas demand and a surge in foreign tourists as pandemic restrictions were further relaxed.

5. The Hang Seng and FTSE 100 are up by 4.02% and 1.56%.

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