Global Factors influencing ASX stocks on 08 June 2023

On 08 June 2023, at AEST 10:42 AM, the benchmark index S&P/ASX 200 is trading down today, declining 5.50 points or 0.08%, and is currently trading at 7,112.50 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Health Care sectors were the top 2 declining sectors, declining 1.69% and 1.11% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.03%; Weighed down by Information technology

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, and NASDAQ-100 ended lower by 1.29%, 0.38%, and 1.75%, and Dow Jones ended higher by 0.27% respectively.

2. Global gas markets may experience a substantial 50% year-on-year price decline due to weakened demand and resilient supply, similar to the current U.S. natural gas market situation.

3. Gold prices remained slightly above their two-month lows on Thursday, maintaining a stagnant pattern observed in recent weeks while awaiting an imminent Federal Reserve meeting. Meanwhile, copper prices experienced a slight decline as China's weak economic indicators persisted, causing apprehension about sustained demand in the world's leading importer of red metal.

4. FX strategists surveyed by Reuters believe that the recent resurgence of the dollar against major currencies is expected to persist for the foreseeable future. They suggest that a significant currency weakening would require rate cuts from the Federal Reserve.

5. The Hang Seng is up 0.80%, and FTSE 100 is down 0.05%.

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