Global Factors influencing ASX stocks on 06 February 2023

On 06 February 2023, at AEDT 01:26 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 14.40 points or 0.19%, and is currently trading at 7,543.60 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The A-REIT and Industrials were the top 2 declining sectors, declining 1.29% and 0.78% in their index values.

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

1. Some of the key U.S. indices ended lower in their previous session. NASDAQ Composite ended lower by 1.59%, NASDAQ-100 lower by 1.79%, Dow industrial lower by 0.38%, and S&P 500 ended lower by 1.04%.
2. Gold prices were flat today after having their worst week in seven months, with attention now shifting to a meeting of the Federal Reserve following stronger-than-expected U.S. job statistics that fueled worries of more monetary tightening.
3. Australian retail sales volumes decreased last quarter for the first time in a year as consumers cut down on their purchases of goods, a hint that increased borrowing rates are finally having an impact on consumer spending.
4. Asian markets are declining today as a string of positive economic reports from the US and throughout the world reduced the likelihood of a recession but also showed that interest rates would need to climb further and persist for a longer period of time.
5. China intends to demonstrate greater support for domestic demand this year, but is not likely to spend more on direct consumer subsidies, rather focusing on investment.
6. Hang Seng is down by 1.68%, and FTSE 100 is up by 1.04%.

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