Global Factors influencing ASX stocks on 20 September 2023

On 20 September 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 28.90 points or 0.40%, and is currently trading at 7,167.70 levels. Out of 11 sectors, 9 are trading lower along with the S&P/ASX 200. The Energy and Materials sectors were the top 2 declining sectors, down by 1.11% and 0.96% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.38%; CXO Is Declining By More Than 4%

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, S&P 500, NASDAQ-100, and Dow jones ended lower by 0.23%, 0.22%, 0.22%, and 0.31% respectively.

2. In Asian trading on Wednesday, oil prices experienced a slight decline. This came as the market absorbed indications of a significant reduction in U.S. crude inventories, and caution prevailed due to the upcoming Federal Reserve interest rate decision. On Tuesday, prices witnessed some profit-taking, briefly reaching their highest point in 10 months. This surge was driven by Saudi Arabia and Russia implementing deeper-than-anticipated supply cuts, hinting at considerably tighter oil markets for the rest of the year.

3. The gold trading community appears to have opted for a "wait-and-see" approach in anticipation of Wednesday's monetary policy update from the Federal Reserve and other central bank rate decisions scheduled for this week. The most active gold futures contract on New York's Comex, for December, concluded the day at US$1,953.70 per ounce, marking a mere 30-cent increase.

4. In the most recent week, U.S. crude oil inventories significantly declined, reversing the previous week's surge, while gasoline inventories, a key fuel product, increased, as indicated in a report from the American Petroleum Institute (API). According to the API, during the week ending September 15, the U.S. crude inventory balance likely dropped by 5.25 million barrels. In the week prior to September 8, the API had reported an increase in crude inventories, with a build of 1.174 million barrels.

5. The Hang Seng and FTSE 100 is up by 0.37% and 0.09%.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com