Global Factors influencing ASX stocks on 20 June 2023

On 20 June 2023, at AEST 11:20 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 22.40 points or 0.31%, and is currently trading at 7,317.30 levels. Out of 11 sectors, 9 sectors are trading higher along with the S&P/ASX 200. The Utilities and A-REIT sectors were the top 2 gaining sectors, gaining 0.43% and 0.24% in their index values.

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

1. On Monday, oil prices declined due to concerns about China's economy, which overshadowed the impact of OPEC+ output reductions and the continuous decrease in the number of oil and gas rigs operating in the United States.

2. The European Union nations faced a deadlock in reaching an agreement on the proposed regulations for the power market within the bloc. The disagreement arose primarily from conflicting views on extending subsidies for coal plants as part of the reform and the proposal to expand state assistance for other power plants.

3. Investors anticipate that the People's Bank of China will take the spotlight on Tuesday by implementing an interest rate cut, with strong expectations in this regard.

4. Multiple sources with direct knowledge of the matter indicate that Japan's financial regulator has approached leading domestic banks to discuss the risks associated with China and ascertain if they have contingency plans in case of further escalation in tensions between China and Western countries.

5. The Hang Seng is flat and FTSE 100 is down 0.71%.

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