Global Factors influencing ASX stocks on 07 September 2023

On 07 September 2023, at AEST 11:40 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 56.80 points or 0.78%, and is currently trading at 7,200.30 levels. Out of 11 sectors, 9 sectors are trading lower along with the S&P/ASX 200. The Materials and Financial sectors were the top 2 declining sectors, down by 1.73% and 0.28% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.86%; Mirroring US Markets    

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, S&P 500, Dow jones, and NASDAQ-100 ended lower by 1.06%, 0.70%, 0.57%, and 0.88% respectively.

2. On Wednesday, the Dow experienced a decline due to renewed concerns about inflation leading to higher interest rates. Alongside this, a significant drop in Apple stocks further impacted market sentiment. In August, the U.S. saw better-than-expected growth in services activity, with a rise to 54.5 from 52.7. Moreover, the prices paid index, which measures inflation, increased to 58.9 from 56.8, reflecting the strong demand for labor and its influence on wage growth.

3. According to a preliminary report released on Wednesday by the American Petroleum Institute (API), crude oil stockpiles in the United States experienced a decline of over 5 million barrels in the most recent week. This marks the fourth consecutive week of inventory reduction as refiners maximized fuel processing in anticipation of the last major surge in summer travel.

4. According to a report published by the Federal Reserve on Wednesday, U.S. economic growth was modest during July and August. This was attributed to a cooling labor market and a slowdown in inflation pressures. The findings of the report support the expectation that the central bank has either completed or is nearing the end of its interest rate increases.

5. The Hang Seng and FTSE 100 is down by 0.04% and 0.16%.

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