Global Factors influencing ASX stocks on 18 September 2023

On 18 September 2023, at AEST 11:25 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 43.30 points or 0.59%, and is currently trading at 7,235.70 levels. Out of 11 sectors, 8 are trading higher despite the decline in S&P/ASX 200. The Materials and Financial sectors were the top 2 gaining sectors, up by 3.88% and 2.52% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.52%; 10 Out Of 11 Sectors Are Trading In Red Zone

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, S&P 500, NASDAQ-100, and Dow jones ended lower by 1.56%, 1.22%, 1.75%, and 0.83% respectively.

2. Britain's primary manufacturing trade body, Make UK, has downgraded its growth forecast for the sector, citing a sharp factory output decline and economic uncertainties. They now predict a 0.5% output decrease in 2023 (previously 0.3%) and a 0.5% growth in 2024, attributing the slowdown to rising interest rates, cost of living, and sluggish international markets.

3. In Sunday's evening trading, U.S. stock futures showed slight gains after a challenging week for key market indices. Investors are preparing for the Federal Reserve's forthcoming interest rate announcement. In the week ahead, investors will closely watch preliminary building permits and housing starts, the Federal Reserve's interest rate decision and accompanying statement, the Philadelphia Fed manufacturing index, existing home sales, the S&P Global services PMI, and a speech by Fed Governor Cook.

4. In the Asian markets this week, the spotlight is on the Bank of Japan's policy meeting, where speculation suggests a potential shift away from ultra-loose policies. Rate decisions and guidance from Taiwan, the Philippines, and Indonesia on Thursday will also be closely monitored, along with inflation data from Japan, Malaysia, and Hong Kong.

5. The Hang Seng and FTSE 100 is up by 0.75% and 0.50%.

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