Global Factors influencing ASX stocks on 19 October 2023

On 19 October 2023, at AEDT 12:30 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 88.40 points or 1.25%, and is currently trading at 6,989.20 levels. All 11 sectors trading lower along with the S&P/ASX 200. The A-REIT and Materials sectors were the top 2 declining sectors, down by 1.83% and 1.77% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 1.36%; All 11 Sectors Are Trading In The 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 1.62%, 1.34%, 1.41%, and 0.98% respectively.

2. On Wednesday, the Dow experienced a decline, influenced by Nvidia's persistent impact on the technology sector for the second consecutive day and the escalating Treasury yields putting pressure on stocks. New York Federal Reserve President John Williams stated that the Fed is likely to maintain higher interest rates for an extended period to curb inflation and align it with the 2% target. Meanwhile, Treasury yields continued to rise, reaching a milestone as the yield on the 10-year Treasury exceeded 4.9% for the first time since 2007.

3. The recent fall in oil prices in Asian trade is attributed to a pause in the strong gains earlier in the week. Market sentiments are influenced by developments in the Israel-Hamas conflict, particularly following the deadly bombing of a Gaza hospital and the cancellation of a summit between U.S., Egyptian, and Palestinian leaders. These events heightened concerns in the market, leading to a temporary boost in oil prices amid fears that other Arab countries might become involved in the conflict. Additionally, market participants are awaiting signals from the Federal Reserve, adding to the cautious atmosphere in oil trading.

4. In September, data revealed that electric battery leader CATL experienced a significant drop in its market share in China, reaching its lowest point in over a year. This decline underscores the challenges the company is encountering, including competition from smaller rivals and reduced demand in the world's largest electric vehicle market.

5. The Hang Seng and FTSE 100 is down by 0.23% and 1.14%.

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