Global Factors influencing ASX stocks on 07 July 2023

On 07 July 2023, at AEST 11:10 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 121.60 points or 1.70%, and is currently trading at 7,041.80 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The Energy and A-REIT sectors were the top 2 declining sectors, declining 2.36% and 2.18% in their index values.

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 0.82%, 0.75%, 1.07%, and 0.79%, respectively.

2. On Thursday, the Dow ended the day with a decline as strong job market data led to increased speculation of additional Federal Reserve rate hikes. This caused Treasury yields to surge higher in anticipation of the upcoming monthly jobs report scheduled for release on Friday.

3. According to economists, the ongoing strike by Canadian dock workers presents an additional factor for the Bank of Canada (BoC) to consider before its next policy announcement. The strike's duration becomes increasingly concerning as it raises the possibility of supply chain disruptions contributing to inflationary pressures.

4. Government data revealed on Friday that Japan's nominal base salary experienced its most rapid growth in 28 years during May. This development further intensifies the discussion surrounding the central bank's withdrawal timing from its ultra-loose monetary stimulus measures.

5. The Hang Seng and FTSE 100 is down by 3.02% and 2.17%.

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