Global Factors influencing ASX stocks on 06 July 2023

On 06 July 2023, at AEST 11:05 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 51.90 points or 0.72%, and is currently trading at 7,201.30 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The Materials and Financial sectors were the top 2 declining sectors, declining 1.36% and 0.53% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.67%; Due to Sell-Off in Materials Sector          

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

1. Key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones and S&P 500 ended lower by 0.18%, 0.03%, 0.38% and 0.20%, respectively.

2. Gold prices stabilized on Thursday, following a decline in the previous session, as revealed by the minutes of the Federal Reserve's June meeting. The minutes indicated that policymakers were in favour of implementing additional rate hikes, which cast a pessimistic shadow on the outlook for metal markets.

3. In the recent week, natural gas production in the United States approached record levels, coinciding with a slight reduction in the intense heat affecting Texas and other southern states. This led market participants to push down prices of the fuel, edging closer to the mid US$2 range.

4. According to FX strategists surveyed by Reuters, the U.S. dollar is expected to maintain its position against most major currencies throughout the remainder of the year, even as interest rate differentials are anticipated to narrow. This projection is based on the resilience of the U.S. economy.

5. The Hang Seng and FTSE 100 is down by 1.57% and 1.03%.

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