Global Factors influencing ASX stocks on 21 July 2023

On 21 July 2023, at AEST 11:25 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 27.50 points or 0.38%, and is currently trading at 7,297.50 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Consumer Discretionary sectors were the top 2 declining sectors, declining 1.95% and 0.68% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.37%; Weighed Down By Tech Stocks 

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, S&P 500, NASDAQ-100 ended lower by 2.05%, 0.68%, 2.28%, Dow jones ended higher by 0.47%, respectively.

2. The volatile oil trade persists, with fluctuations from one day to the next. Saudi production cuts face challenges due to weak gasoline demand in the United States, even during the summer travel season, when fuel consumption usually surges.

3. As anticipated, natural gas storage levels in the United States remained consistent last week, and weather forecasts showed no significant changes. Despite this, U.S. gas prices unexpectedly surged by approximately 6% on Thursday. Market observers suggest that this rally may be influenced more by the ongoing Russia-Ukraine situation than the immediate supply and demand factors.

4. Data released on Friday revealed that Japanese consumer inflation experienced a modest increase in June, slightly below initial expectations. The rise was influenced by reduced energy costs. However, core inflation and a crucial Bank of Japan indicator remained relatively stable.

5. The Hang Seng is down by 0.13% and FTSE 100 is up by 0.76%.

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