Global Factors influencing ASX stocks on 18 August 2023

On 18 August 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 4.30 points or 0.06%, and is currently trading at 7,141.70 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Telecommunication Services and Consumer Discretionary sectors were the top 2 declining sectors, down by 2.03% and 1.18% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.05%; Imugene Limited Is Declining By More Than 10%

On that note, let us look at a few global reasons impacting the stock market today:

1. Key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended lower by 1.17%, 1.08%, 0.77%, and 0.84% respectively.

2. In Asian trading on Friday, oil prices displayed limited movement, yet they appeared ready to halt a seven-week streak of gains due to concerns over a potential Chinese economic slowdown and increasing U.S. interest rates, which cast uncertainty on demand prospects. Notably, crude prices exhibited some resilience on Thursday, rebounding by approximately US$1 from a recent two-week low following China's central bank's commitment to maintaining market liquidity to support economic expansion.

3. Consumer inflation in Japan edged higher in July, surpassing expectations, attributed to the yen's renewed decline, which elevated import expenses. This reading indicates increased pressure on the Bank of Japan to consider policy tightening.

4. During Thursday's evening trade, U.S. stock futures showed minimal movement, following a third consecutive session of decline in major benchmark indices due to increased bond yields negatively impacting risk sentiment.

5. The Hang Seng and FTSE 100 is down by 0.01% and 0.63%.

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