Global Factors influencing ASX stocks on 22 February 2023

On 22 February 2023, at AEDT 01:15 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 15.00 points or 0.20%, and is currently trading at 7,321.30 levels. Out of 11 sectors, 6 sectors are trading lower along with the S&P/ASX 200. The Consumer Discretionary and Telecommunication services were the top 2 declining sectors, declining 1.64% and 0.79% in their index values.

Also read-: Mid-Market: S&P/ASX 200 Trading Sharply Lower By 0.76%; Mirroring Wall Street Losses

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 2.50%, 2.41% and 2.06% and 2.00% respectively.

2. Gold prices were marginally higher than a six-week low, as markets remained cautious ahead of the release of the minutes from the Federal Reserve's February meeting, while some stronger-than-expected U.S. economic data bolstered the dollar.

3. Last quarter, Australian wages climbed at the quickest annual rate in a decade. However, this fell short of market expectations, perhaps easing the pressure for future aggressive interest rate rises, sending the Australian dollar down.

4. UK companies provided the largest annual pay rises in 32 years in the three months to the end of January. Still, these gains lag far behind double-digit inflation, according to industry figures released today.

5. The dollar and pound rose today as an unexpected comeback in economic activity in the USA and the UK increased the prospect that their central banks would need to boost interest rates further.

6. The Hang Seng is down 0.52% and FTSE 100 is down by 0.46%.

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