Global Factors influencing ASX stocks on 16 October 2023

On 16 October 2023, at AEDT 11:31 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 11.30 points or 0.16%, and is currently trading at 7,039.70 levels. Out of 11 sectors, 8 are trading lower along with the S&P/ASX 200. The Information Technology and Telecommunications Services sectors were the top 2 declining sectors, down by 2.25% and 72% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.14%; Dragged Down By IT Stocks

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, S&P 500, NASDAQ-100 ended lower by 1.23%, 0.50%, 1.24% while Dow jones ended higher by 0.12% respectively.

2. In Asian trading on Monday, oil prices dropped, reversing direction from the previous week's sharp rally. The market was cautious, awaiting developments in the Israel-Hamas conflict and key Asian economic indicators. Despite expectations of supply disruptions due to the conflict, volatile swings persisted last week. However, signs of reduced U.S. demand and increased production somewhat tempered the gains.

3. In Sunday's evening trading, US stock futures climbed, building on a week of gains propelled by strong earnings reports from significant financial corporations. Major benchmark averages had surged due to better-than-anticipated financial results, contributing to the positive market sentiment as investors anticipated continued growth in the wake of solid corporate performances.

4. Looking ahead in Asian markets, Monday is expected to start cautiously following Wall Street's decline and a surge in oil prices on Friday. The backdrop includes escalating violence in the Middle East and anticipation for key Chinese economic data later in the week. On Monday, investors will focus on Japanese industrial production, Indonesian trade, and Indian wholesale price inflation figures. Additionally, Thursday brings policy decisions and outlooks from the central banks of South Korea and Indonesia.

5. The Hang Seng and FTSE 100 is down by 0.33% and 0.59%.

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