Global Factors influencing ASX stocks on 10 August 2023

On 10 August 2023, at AEST 11:35 AM, the benchmark index S&P/ASX 200 is trading down today, declining 13.00 points or 0.18%, and is currently trading at 7,325.00 levels. Out of 11 sectors, 6 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Financial sectors were the top 2 declining sectors, down by 1.55% and 0.61% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.12%; Dragged Down By IT And Financials Sectors         

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, S&P 500, and Dow jones ended lower by 1.17%, 1.12%, 0.70%, and 0.54% respectively.
2. Contrary to Saudi production cuts optimism, the custodian of U.S. energy information countered with its own statement. The latest weekly report indicated a three-year high in U.S. oil output at 12.6 million barrels per day, as per the Weekly Petroleum Status Report by the EIA, covering the week until August 4.
3. Gold prices remained near one-month lows on Thursday, and copper prices stabilized following significant declines. This cautious stance in the market was in anticipation of crucial U.S. inflation data scheduled for later in the day. Over the past week, the value of gold had considerably declined, influenced by a stronger dollar and increasing yields. Escalating aversion to risk further propelled traders towards the dollar, driven by the belief that U.S. interest rates will sustain higher levels throughout the year.
4. On Wednesday, U.S. stocks concluded the trading day with a decline. This followed a report indicating that Americans had recorded their highest credit card borrowing in the last quarter. The market's downward trend also occurred a day prior to the release of the U.S. Consumer Price Index (CPI) inflation data, which holds the potential to impact decisions concerning interest rates by the Federal Reserve.
5. The Hang Seng and FTSE 100 is up by 0.32% and 0.80%.

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