Global Factors influencing ASX stocks on 17 October 2023

On 17 October 2023, at AEDT 12:35 PM, the benchmark index S&P/ASX 200 is trading up today, gaining 73.70 points or 1.05%, and is currently trading at 7,100.20 levels. All 11 sectors are trading higher along with the S&P/ASX 200. The Information Technology and Materials sectors were the top 2 gaining sectors, up by 1.88% and 1.41% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.69%; Buoyed By IT And Materials 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, S&P 500, NASDAQ-100, and Dow jones ended higher by 1.20%, 1.06%, 1.18%, and 0.93% respectively.

2. The Dow experienced a rise on Monday as investors placed optimistic bets on prominent technology companies, dismissing concerns about the continuous increase in Treasury yields. Attention has now shifted toward the expected acceleration in quarterly earnings for the week, driving market sentiment and confidence in the tech sector.

3. New Zealand's consumer inflation reached a two-year low in the second quarter, diminishing the likelihood of the central bank raising the cash rate in November and causing a decline in the New Zealand dollar. Year-on-year, consumer prices increased by 5.6% in the third quarter, down from a 6.0% rise in the second quarter, as reported by Statistics New Zealand on Tuesday. These figures were slightly below economists' projections of a 5.9% annual increase in a Reuters poll.

4. As per a Reuters poll, the Bank of Korea is expected to maintain its key policy rate unchanged for the sixth consecutive meeting on October 19. Despite the resurgence in inflation, currently standing at 3.7% after a decline from its peak of 6.3% last year, the central bank is anticipated to keep a hawkish stance. This rise in inflation is not anticipated to prompt immediate rate hikes, as the bank foresees a temporary increase before a cooling period by the year-end.

5. The Hang Seng is flat and FTSE 100 is up by 0.41%.

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