Global Factors influencing ASX stocks on 14 August 2023

On 14 August 2023, at AEST 11:35 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 20.60 points or 0.28%, and is currently trading at 7,319.50 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Industrials and Consumer Staples sectors were the top 2 declining sectors, down by 0.55% and 0.42% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.25%; More Sectors Are Trading In Red              

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, NASDAQ-100, S&P 500 ended lower by 0.56%, 0.67%, 0.11%, and Dow jones ended higher by 0.30% respectively.

2. Japanese automakers are finding a vital lifeline in the form of a weaker yen, which is boosting profits during challenging times of declining sales in China and the transition to electric vehicles. While a depreciating yen has historically boosted profits for major Japanese exporters, the impact has diminished for automakers that have expanded their overseas manufacturing in recent years.

3. On Monday, Asian stocks faced difficulties as investors anticipated Chinese data that may emphasize the need for significant stimulus, despite Beijing's apparent resistance. Additionally, increasing Treasury yields placed strain on the lofty valuations of tech stocks and supported the strength of the dollar.

4. During Sunday evening's trading, U.S. stock futures showed modest gains, marking a response to a week where benchmark averages had a mixed performance due to rising bond yields negatively impacting sentiment, leading to a decline in tech assets sensitive to risk.

5. The Hang Seng and FTSE 100 is down by 0.90% and 1.24%.

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