Global Factors influencing ASX stocks on 17 August 2023

On 17 August 2023, at AEST 11:35 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 70 points or 0.97%, and is currently trading at 7,125.20 levels. Out of 11 sectors, 10 sectors are trading lower along with the S&P/ASX 200. The Telecommunication Services and Information Technology sectors were the top 2 declining sectors, down by 2.30% and 1.37% in their index values.

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, NASDAQ-100, S&P 500, and Dow jones ended lower by 1.15%, 1.07%, 0.76%, and 0.52% respectively.

2. In Asian trading on Thursday, oil prices dropped to a two-week low, extending recent declines due to concerns about China's economic slowdown. Additionally, a strong dollar added pressure, reflecting ongoing signs of a hawkish Federal Reserve.

3. On Wednesday, Wall Street concluded with losses following the release of Federal Reserve minutes, revealing a split among officials regarding further interest rate increases from their recent gathering.

4. The minutes from the Fed's July monetary policy assembly indicated that while most policymakers still emphasize combating inflation, this has intensified uncertainty among investors about the future trajectory of interest rates.

5. During Wednesday evening's trading, U.S. stock futures exhibited limited movement, reflecting a downbeat session for prominent benchmark indices. This occurred as market participants evaluated the increasing likelihood of additional interest rate hikes by Federal Reserve officials.

6. The Hang Seng and FTSE 100 is down by 1.36% and 0.44%.

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