Global Factors influencing ASX stocks on 23 October 2023

On 23 October 2023, at AEDT 12:25 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 59.90 points or 0.87%, and is currently trading at 6,840.80 levels. Out of 11 sectors, 9 are trading lower along with the S&P/ASX 200. The Materials and Energy sectors were the top 2 declining sectors, down by 1.56% and 1.26% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.76%; Dragged Down By Energy And Materials Sectors

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 1.53%, 1.26%, 1.50%, and 0.86% respectively.

2. On Monday, Asian shares declined due to escalating concerns about a broader conflict in the Middle East, casting a shadow over the market sentiment in a week filled with crucial U.S. data on growth, inflation, and earnings reports from major global technology firms. Washington issued warnings over the weekend about substantial risks to U.S. interests in the region as Israel, a U.S. ally, escalated attacks on Gaza, and tensions flared on its border with Lebanon. Additionally, investors are closely monitoring policy meetings by the European Central Bank and Bank of Canada, even though no interest rate hikes are anticipated, focusing on any indications regarding future monetary policy directions.

3. In November, certain graphite consumers plan to expedite imports of the essential electric vehicle (EV) battery ingredient from China before the country's export restrictions take effect for specific products. Analysts mentioned that this might prove challenging due to intricate specifications. China, the global leader in graphite production and export, announced on Friday that starting from December 1, permits would be necessary for exporting certain natural and man-made forms of graphite.

4. Textainer, a container lessor, announced on Sunday that it will be acquired by U.S. infrastructure investor Stonepeak for approximately US$2.1 billion. Following the deal's completion, Textainer intends to go private and will cease trading on the New York Stock Exchange and Johannesburg Stock Exchange. Headquartered in Bermuda, Textainer leases intermodal containers to approximately 200 customers globally and operates through 14 offices and around 400 depots worldwide.

5. The Hang Seng and FTSE 100 is down by 0.72% and 1.30%.

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