Global Factors influencing ASX stocks on 20 October 2022

On 20 October 2022, at AEDT 12:40 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 76.20 points or 1.12%, and is currently trading at 6,723.90 levels. Out of 11 sectors, 10 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Consumer Discretionary sectors are the top 2 losing sectors, declining 3.82% and 2.32% in their index values.

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

1. Key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, Dow industrial, and S&P 500 declined 0.85%, 0.40%, 0.33% and 0.67%, respectively.
2. Australia's unemployment remained steady at a near 50-year low of 3.5% in September as the number of people in work increased by just 900, and the dole queue edged 1.8% or 8800 people higher.
3. Gold prices declined to an over three-week low today as anticipations of more Federal Reserve interest rate hikes pushed up U.S. Treasury yields and caused a steep selloff in metal markets.
4. U.S. President Joe Biden announced a plan yesterday to sell off the rest of his release from the nation's emergency oil reserve by year's end and begin refilling the stockpile as he tries to dampen high gasoline prices ahead of midterm elections on Nov. 8.
5. The Bank of Japan announced today that it would conduct emergency bond-buying operations to contain rising yields. The BOJ offered to buy 100 billion yen ($666.98 million) of JGBs with maturities of 10-20 years.
6. Oil prices are rising today as caution over tightening supply countered the negative impact of uncertain demand and news that the United States will release more crude from its reserves.
7. Hang Seng is down by 2.12%, and FTSE 100 is down by 0.17%.

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