Global Factors influencing ASX stocks on 13 October 2023

On 13 October 2023, at AEDT 12:25 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 31.80 points or 0.45%, and is currently trading at 7,059.20 levels. Out of 11 sectors, 10 are trading lower along with the S&P/ASX 200. The A-REIT and Industrial sectors were the top 2 declining sectors, down by 1.70% and 0.94% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.37%; In Line With US Market Losses

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, NASDAQ-100, and Dow jones ended lower by 0.63%, 0.62%, 0.37%, and 0.51% respectively.

2. On Thursday, the Dow experienced intraday gains but ultimately closed lower, impacted by increasing Treasury yields despite early optimism. This shift followed surprising inflation data, with the consumer price index expected to rise to 0.4% in September, pushing the annual rate to 3.7%, slightly surpassing the anticipated 0.3% and 3.6% increase. Additionally, the labor market displayed unexpected strength, with initial jobless claims falling short of expectations, contributing to the market fluctuations.

3. Belden (BDC) witnessed a decline of over 16% in its after-hours stock price following the release of the company's preliminary Q3/23 results. Although a macroeconomic environment weaker than expected had an adverse effect on revenues, the company managed to attain the lower boundary of its previously projected Adjusted EPS outlook due to robust gross margin performance and decreased variable compensation costs," stated CEO Ashish Chand.

4. Argentina's central bank increased the nation's benchmark interest rate from 118% to 133% on Thursday due to inflation data exceeding forecasts. This move occurred just 10 days before voters are set to choose a new president amid a worsening economic crisis. The decision was made following the release of September's inflation figures, which showed a monthly increase of 12.7% and an annual surge of 138%, exacerbating the already soaring prices that have eroded incomes and savings. As a result, nearly two out of every five people in Argentina have fallen below the poverty line.

5. The Hang Seng and FTSE 100 is up by 1.93% and 0.32%.

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