Global Factors influencing ASX stocks on 23 August 2023

On 23 August 2023, at AEST 11:45 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 7.20 points or 0.10%, and is currently trading at 7,128.80 levels. Out of 11 sectors, 10 sectors are trading lower despite the gain in S&P/ASX 200. The Utilities and Information Technology sectors were the top 2 declining sectors, down by 0.50% and 0.18% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.25%; Information Technology Sector Tumbled By 4.0%               

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 ended higher by 0.06% and NASDAQ-100, S&P 500, Dow jones ended lower by 0.19%. 0.28%, 0.51% respectively.

2. According to the American Petroleum Institute (API), it's expected that U.S. crude oil stocks decreased by approximately 2.5 million barrels last week. Conversely, there was a nearly equivalent increase in distillates, and a minor decline in gasoline stocks. This data is from a preliminary report released on Tuesday before the official inventory figures, suggesting that the U.S. crude inventory balance may have dropped by 2.418 million barrels for the week ending August 18th.

3. During early Asian trading on Wednesday, oil prices edged downward, marking a third consecutive session of losses. The prevailing uncertainty regarding U.S. interest rates continued to steer traders toward the dollar. Additionally, oil markets received discouraging signals from China. A series of recent indicators have suggested a slowdown in the economic recovery of the world's largest oil importer, which is anticipated to diminish its demand for crude oil.

4. In August, Japan's factory activity contracted for the third consecutive month due to elevated oil prices and concerns about the global economic future. However, the rate of decline moderated, as revealed in a private sector survey conducted on Wednesday.

5. The Hang Seng and FTSE 100 is up by 0.95% and 0.18%.

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