Global Factors influencing ASX stocks on 22 June 2023

On 22 June 2023, at AEST 11:25 AM, the benchmark index S&P/ASX 200 is trading lower today, dropping 67.90 points or 0.93%, and is currently trading at 7,247.50 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The Information Technology and A-REIT sectors are the top 2 declining sectors, declining 2.09% and 1.64% in their index values.

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 1.21%, 0.52%, 1.35%, and 0.30% respectively.

2. In a preliminary report released on Wednesday, the petroleum industry group API indicated a likelihood of a decrease in U.S. crude stocks and a decline in inventories of distillates from the previous week. However, inventories of gasoline showed a significant increase. These observations were made in anticipation of the official inventory data.

3. On Thursday, the Bank of England is poised to raise interest rates for the 13th consecutive time, following the release of inflation data that exceeded expectations. However, there is a division among investors regarding the magnitude of the upcoming rate hike.

4. In early Thursday trade, oil prices maintained most of their gains from the previous day, as market participants assessed an unforeseen decline in U.S. crude oil stocks alongside the potential for decreased demand following indications of additional interest rate hikes by the Federal Reserve chairman.

5. The Hang Seng and FTSE 100 is down by 1.98% and 0.13%.

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