Global Factors influencing ASX stocks on 24 August 2023

On 24 August 2023, at AEST 11:45 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 32.50 points or 0.45%, and is currently trading at 7,180.90 levels. Out of 11 sectors, 8 sectors are trading higher along with the S&P/ASX 200. The Information Technology and Materials sectors were the top 2 gaining sectors, up by 1.14% and 0.79% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.34%; Mirroring US Markets  

On that note, let us look at a few global reasons impacting the stock market today:

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 1.59%, 1.60%, 1.10%, and 0.54% respectively.

2. On Wednesday, the Dow registered gains, primarily propelled by the technology sector, reflecting growing confidence leading up to Nvidia's forthcoming quarterly earnings report. Major tech stocks surged just before Nvidia's results, which are anticipated to significantly impact overall sector sentiment.

3. The US dollar experienced a notable retreat against Asian currencies on Thursday. This retreat was triggered by global economic data that came in weaker than anticipated, creating uncertainty regarding interest rates. This drop in US yields occurred just before the Federal Reserve's Jackson Hole symposium.

4. The Australian dollar, which had been under pressure for several months due to signs of a slowdown in China and the resilience of the US, saw a significant 0.9% surge following disappointing US manufacturing and services PMI figures.

5. During early Asian trading on Thursday, oil prices declined. This decline was driven by disappointing manufacturing data from significant economies, which offset positive sentiment stemming from a more substantial than anticipated reduction in U.S. crude inventories.

6. The Hang Seng and FTSE 100 is up by 0.31% and 0.68%.

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