Global Factors influencing ASX stocks on 05 September 2023

On 05 September 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 32.90 points or 0.45%, and is currently trading at 7,285.90 levels. Out of 11 sectors, 7 sectors are trading lower along with the S&P/ASX 200. The Health Care and Consumer Discretionary sectors were the top 2 declining sectors, down by 0.20% and 0.15% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.52%; Ahead of RBA’s Cash Rate Decision         

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

1. In August, South Korea's annual consumer inflation accelerated to 3.4%, and the month-on-month rate reached its fastest pace since early 2017. The Bank of Korea, prioritizing price stability amid heightened growth risks, opted to keep interest rates steady for a fifth consecutive meeting.

2. According to Barclays data, the growth in British consumer spending decelerated last month, contributing to indications of an economic downturn. This occurred despite a twofold increase in cinema revenue following the release of movies like "Barbie" and "Oppenheimer." Annual growth in consumer spending via credit and debit cards decreased to 2.8% in August, down from 4.0% in July, with the bank attributing the slowdown to persistent rainy weather, as seen in the previous month.

3. Australia's central bank takes center stage in the Asia-Pacific region on Tuesday with its upcoming interest rate decision, which is a significant event on a busy regional economic calendar. This event coincides with the return of U.S. markets following the Labor Day holiday, which is expected to bring increased activity to September trading.

4. Additionally, local markets will closely monitor inflation data from South Korea, the Philippines, and Vietnam. Furthermore, there will be various purchasing managers index (PMI) reports, including the services PMI from China, as well as the release of second-quarter GDP growth figures from South Korea.

5. The Hang Seng is up by 2.51% and FTSE 100 is down by 0.16%.

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