Global Factors influencing ASX stocks on 22 August 2023

On 22 August 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 10.10 points or 0.14%, and is currently trading at 7,105.40 levels. Out of 11 sectors, 6 sectors are trading lower along with the S&P/ASX 200. The Consumer Staples and Energy sectors were the top 2 declining sectors, down by 2.31% and 0.89% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.22%; Tech Sector Gained By More Than 3%    

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

1. Some of the key U.S. indices ended mixed in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500 ended higher by 1.56%, 1.65%, 0.69% and Dow jones ended lower by 0.11% respectively.

2. On Monday, the Dow finished with losses due to a decline in consumer staples and energy, even though the tech sector rebounded under Nvidia's leadership. This occurred despite a surge in Treasury yields, reaching levels not seen in 16 years, in anticipation of possible hints regarding monetary policy later in the week.

3. The Nasdaq surged over 1% higher, and the S&P 500 saw gains on Monday. This rise was attributed to the positive sentiment among investors as they looked forward to Nvidia's upcoming earnings report this week, leading to an increase in the stock price of Nvidia, along with other technology-related companies.

4. Oil prices remained within a narrow range on Tuesday following a sluggish beginning to the week. Investors were assessing the potential for reduced Chinese demand following a less-than-encouraging interest rate cut while also anticipating further indications regarding U.S. monetary policy. Despite these considerations, the likelihood of more constrained oil markets this year, particularly in light of substantial production reductions by Saudi Arabia and Russia, continued to keep crude prices near their highest points for 2023.

5. The Hang Seng and FTSE 100 is down by 1.82% and 0.06%.

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