Global Factors influencing ASX stocks on 19 September 2023

On 19 September 2023, at AEST 11:40 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 20.70 points or 0.29%, and is currently trading at 7,209.70 levels. Out of 11 sectors, 8 are trading lower along with the S&P/ASX 200. The Information Technology and Health Care sectors were the top 2 declining sectors, down by 1.70% and 0.97% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.51%; Dragged Down By A-REIT And Financials 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 0.01%, 0.07%, 0.15%, and 0.02% respectively.

2. The British pound's downward trend against the US dollar persisted on Monday, shortly before the anticipated Bank of England interest rate hike. Concerns revolve around the possibility that the rate increase may be accompanied by a dovish stance, with indications that the central bank is approaching the end of its rate-hike cycle.

3. On Monday, Wall Street concluded with minimal fluctuations, with investors eagerly anticipating the anticipated decision by the U.S. Federal Reserve to maintain unchanged key interest rates on Wednesday. In a session marked by uncertainty and limited catalysts, all three major U.S. stock indexes recorded slight gains, reflecting a lack of strong conviction among investors in the lead-up to the Fed's two-day monetary policy meeting.

4. According to data from the Treasury Department released on Monday, foreign ownership of U.S. Treasuries increased in July. This marks the second consecutive month of growth, even amid a murky interest rate outlook due to a combination of mixed economic indicators. The total amount of U.S. Treasuries held by foreign entities rose to US$7.655 trillion in July, up from US$7.562 trillion in the previous month. In comparison to the same period a year ago, overseas holdings of U.S. Treasuries have grown by 2.2%.

5. The Hang Seng is flat and FTSE 100 is down by 0.76%.

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