Global Factors influencing ASX stocks on 09 October 2023

On 09 October 2023, at AEDT 12:40 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 35.00 points or 0.50%, and is currently trading at 6,989.20 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The Energy and Materials sectors were the top 2 gaining sectors, up by 2.52% and 1.54% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.35%; Buoyed By Oil And Gold Stocks

On that note, let us look at a few global reasons impacting the stock market today:

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, S&P 500, NASDAQ-100, and Dow jones ended higher by 1.60%, 1.18%, 1.70%, and 0.87% respectively.

2. During Sunday's trading, U.S. stock futures declined due to heightened global tensions after a significant escalation in the Israeli-Palestinian conflict. Hamas attacks on Israeli towns resulted in numerous casualties, prompting investors to seek safety. Meanwhile, the nonfarm payrolls data revealed a surprising addition of 336,000 jobs, exceeding the expected 170,000, while wage growth remained subdued. This subdued wage growth hinted at a potential easing of inflationary pressures, offering some reassurance to concerned investors.

3. On Monday, amid Middle East tensions, the dollar and yen rose, driven by market concerns, while a strong U.S. jobs report bolstered the greenback. Conversely, the Australian and New Zealand dollars, sensitive to risk, dropped in quiet Asian trading, particularly with Japan observing a holiday.

4. In early Asian trade on Monday, oil prices surged by over US$3 per barrel due to intense military clashes between Israeli and Hamas forces over the weekend. These dramatic events have heightened political uncertainty across the Middle East. Moreover, this eruption of violence poses a significant challenge to U.S. efforts to mediate a reconciliation between Saudi Arabia and Israel. This negotiation involved the normalization of ties between the two countries, contingent on a defense agreement between Washington and Riyadh, a delicate balance now disrupted by the ongoing conflict.

5. The Hang Seng and FTSE 100 is up by 1.58% and 0.58%.

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