Global Factors influencing ASX stocks on 13 November 2023

On 13 November 2023, at AEDT 12:30 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 8.60 points or 0.12%, and is currently trading at 6,967.90 levels. Out of 11 sectors, 8 are trading lower along with the S&P/ASX 200. The Financial and Telecommunication Services sectors were the top 2 declining sectors, down by 0.54% and 0.29% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.10%; Declined By Financial And Industrials Sectors

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 higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 2.05%, 2.25%, 1.56%, and 1.15% respectively.

2. In October, Japanese wholesale inflation decelerated noticeably year-on-year, indicating a diminishing influence of cost-push pressures that previously elevated prices across various goods. The Corporate Goods Price Index (CGPI), gauging prices charged between companies for goods and services, rose by 0.8% from the previous year. While this aligns closely with the market's anticipated 0.9% increase, it reflects a substantial slowdown compared to the 2.2% surge observed in September.

3. Property website Rightmove reported the most rapid decline in asking prices for homes in Britain in five years during the current time of the year. This decline, observed between October 8 and November 4, amounts to an average drop of 1.7%. The magnitude of this decrease is larger than what is traditionally expected during the pre-Christmas period. The data underscores the impact of increased borrowing costs, signaling a slowdown in the housing market.

4. In October, foreign investors withdrew a historic sum from U.S. equity funds tied to Saudi Arabia amid the Middle East's worst violence in years, disrupting the region's business-friendly image. LSEG data reveals that the iShares MSCI Saudi Arabia ETF experienced record net outflows exceeding US$200 million, marking a 20% reduction from its initial holdings at the month's start. Exchange-traded funds (ETFs) associated with stocks in Qatar, the UAE, and Israel also faced outflows, reflecting investor concerns about instability. Flow activity in these regions has been subdued in the current month.

5. The Hang Seng and FTSE 100 is down by 1.76% and 1.28%.

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