Global Factors influencing ASX stocks on 06 October 2023

On 06 October 2023, at AEDT 12:25 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 16.60 points or 0.24%, and is currently trading at 6,942.10 levels. Out of 11 sectors, 4 are trading higher along with the S&P/ASX 200. The Financial and Health Care sectors were the top 2 gaining sectors, up by 1.05% and 0.47% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.35%; Gaining By Financials And Healthcare Sectors

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, S&P 500, NASDAQ-100, and Dow jones ended lower by 0.12%, 0.13%, 0.36%, and 0.03% respectively.

2. The Dow Jones Industrial Average showed little change on Thursday, reflecting investor uncertainty about sustained high-interest rates. This cautious outlook was driven by anticipation of the Friday jobs report, pivotal in the Federal Reserve's decision on potential rate hikes next month, prompting investors to closely monitor economic indicators for market direction.

3. According to government data released on Friday, Japan's real wages declined for the 17th consecutive month in August. The persistent rise in prices surpassed the growth in salaries, affecting consumer purchasing power. This trend is closely monitored by global financial markets, especially in the context of the Bank of Japan's emphasis on sustainable wage increases. In August, inflation-adjusted real wages fell by 2.5% compared to the previous year, following a revised 2.7% drop in the previous month, as reported by the Ministry of Health, Labour, and Welfare.

4. Rivian Automotive Inc witnessed a significant drop of nearly 23% in its shares on Thursday, marking the largest daily percentage decline since its 2021 debut. This decline followed the company's announcement of issuing US$1.5 billion worth of convertible green bonds. Rivian, headquartered in Irvine, California, aims to use these bonds, maturing in October 2030 and convertible to cash or shares, to mitigate risks associated with launching its R2 sports utility vehicle in Georgia, according to a company spokesperson speaking to Reuters on Wednesday.

5. The Hang Seng and FTSE 100 is up by 0.10% and 0.53%.

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