Global Factors influencing ASX stocks on 18 July 2023

On 18 July 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading down today, declining 16.50 points or 0.23%, and is currently trading at 7,282.00 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Materials and Health Care sectors were the top 2 declining sectors, declining 0.64% and 0.40% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.20%; Dragged Down By Energy And A-REIT Sectors     

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

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 0.93%, 0.95%, 0.39%, and 0.22%, respectively.

2. The US dollar faced challenges in its recovery on Monday following a significant drop to its lowest levels in over a year last week. The bears appear to be gaining control over the greenback, fuelled by increasing speculation of a less aggressive stance from the Federal Reserve. As optimism grows regarding a smooth economic transition, the prospect of a softer landing reinforces the bearish sentiment surrounding the US dollar.

3. Analysts informed the state-backed news outlet China Securities Journal on Tuesday that the People's Bank of China (PBOC) retains room for additional monetary policy easing. They suggested that in the third quarter, there could be potential reductions in interest rates and reserve requirements.

4. On Monday, the Dow Jones Industrial Average ended the day with gains, primarily driven by the technology and financial sectors. Investors eagerly anticipated upcoming quarterly reports from major corporations and Wall Street banks later in the week. However, the overall market's upward momentum was limited by a decline in the telecommunications sector.

5. The Hang Seng is flat and FTSE 100 is down by 0.38%.

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