Global Factors influencing ASX stocks on 06 September 2023

On 06 September 2023, at AEST 10:39 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 21.10 points or 0.29%, and is currently trading at 7,293.20 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Health Care and A-REIT sectors were the top 2 declining sectors, down by 1.06% and 0.61% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.31%; Dragged Down By Healthcare And IT Sectors      

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 mixed in their previous session. NASDAQ Composite, S&P 500, Dow jones ended lower by 0.8%, 0.42%, 0.56% while NASDAQ-100 ended higher by 0.11% respectively.

2. On Tuesday, the Dow experienced a decline due to increasing Treasury yields. However, the drop was limited by a surge in energy stocks, driven by rising oil prices following the decision of major oil producers to extend their production cuts. Energy stocks saw a gain of over 1% as oil prices rose. Saudi Arabia revealed its intentions to extend production cuts until the end of 2023, while Russia announced an extension of export cuts of 300,000 barrels per day until the year's end.

3. According to a Reuter’s survey on Tuesday, it is expected that China's exports shrank at a reduced rate in August. This underscores the ongoing challenges faced by manufacturers, as their overseas shipments had their weakest performance since February 2020 in the previous month.

4. On Tuesday, Wall Street's primary indices concluded with losses, primarily driven by the Dow, which saw the most significant decline. This occurred as Treasury yields increased alongside oil prices, prompting investors to evaluate the Federal Reserve's future interest rate trajectory. Although the previous week had seen all three major U.S. stock indexes posting gains due to optimism about a more dovish Federal Reserve stance, this sentiment had waned by Monday.

5. The Hang Seng and FTSE 100 is down by 2.06% and 0.20%.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com