Global Factors influencing ASX stocks on 22 September 2023

On 22 September 2023, at AEST 11:25 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 98.10 points or 1.39%, and is currently trading at 6,967.10 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The Energy and Information Technology sectors were the top 2 declining sectors, down by 4.76% and 4.14% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 1.19%; All 11 Sectors Are Trading In Red Zone

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 lower in their previous session. NASDAQ Composite, S&P 500, NASDAQ-100, and Dow jones ended lower by 1.82%, 1.64%, 1.84%, and 1.08% respectively.

2. On Thursday, a widespread sell-off hit Wall Street, as concerns emerged that the Federal Reserve's conservative monetary stance would persist longer than expected, dampening investor enthusiasm for risk.

All three prominent U.S. stock indices plummeted by over 1%, while the yields on the 10-year U.S. Treasury bonds reached a 16-year high. This came in the wake of Fed Chairman Jerome Powell's cautionary statement that inflation has a considerable distance to cover before aligning with the central bank's 2% objective.

3. In August, Japan's core inflation remained stable, marking the 17th consecutive month it has stayed above the central bank's 2% target. This data indicates a widening trend of price pressure and could bolster the argument for a departure from ultra-accommodative monetary policies.

4. A survey revealed that Japan's manufacturing sector experienced its fourth consecutive month of contraction, while growth in the service sector slowed to an eight-month low. These findings underscore the difficulties the economy is encountering as it strives to achieve a robust recovery.

5. The Hang Seng and FTSE 100 is down by 1.29% and 0.69%.

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