Global Factors influencing ASX stocks on 21 August 2023

On 21 August 2023, at AEST 11:20 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 9.40 points or 0.13%, and is currently trading at 7,138.70 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Consumer Staples sectors were the top 2 declining sectors, down by 1.43% and 0.70% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.14%; More Sectors Are Trading In Red Zone   

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

1. Key U.S. indices ended mixed in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500 ended lower by 0.20%, 0.14%, 0.01% and Dow jones ended higher by 0.07% respectively.

2. Examining the Asian markets' upcoming day, financial markets columnist Jamie McGeever anticipates that the People's Bank of China will likely reduce interest rates on Monday. However, to effectively address the prevailing unease and apprehension surrounding China, they might need to take a bold and substantial approach.

3. During Sunday evening's trading, U.S. stock futures were showing a marginal uptick. This followed a week where benchmark averages faced a decline due to increasing bond yields and sustained economic challenges in China.

4. Starting the week, the dollar commenced with strength after recording five consecutive weeks of appreciation. Investors are closely watching the Federal Reserve's Jackson Hole symposium for insights into future interest rate trends, seeking clarity as the current tightening cycle unfolds. Last week, the dollar saw a 0.7% rise against the euro, made modest gains against the yen, and surged by over 1% against currencies from the Antipodes. This movement correlated with rising U.S. Treasury yields, driven by expectations of prolonged higher interest rates.

5. The Hang Seng and FTSE 100 is down by 2.05% and 0.65%.

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