Global Factors influencing ASX stocks on 24 October 2023

On 24 October 2023, at AEDT 12:30 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 11.80 points or 0.17%, and is currently trading at 6,855.90 levels. Out of 11 sectors, 8 are trading higher along with the S&P/ASX 200. The Energy and Material sectors were the top 2 gaining sectors, up by 0.84% and 0.73% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.16%; Buoyed By IT And Energy Stocks

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 mixed in their previous session. NASDAQ Composite, NASDAQ-100, ended lower by 0.27%, 0.30% while Dow jones, S&P 500 ended lower by 0.58%, 0.17% respectively.

2. On Monday, the Dow experienced a decline due to fluctuating Treasury yields. The tech sector saw a rally, but energy and financial sectors weakened. Treasury yields dropped from recent multi-year highs, with the 10-year yield falling to 4.854% after reaching a 16-year peak at 5.025%. The increase in long-term yields can be attributed to robust economic growth, persistent inflation, and heightened borrowing by the U.S. Treasury.

3. In October, Japan's factory activity contracted for the fifth consecutive month, and the service sector experienced its slowest growth this year, according to a survey released on Tuesday. The results reflect increasing uncertainty about the future of the world's third-largest economy. The survey indicated a rapid decline in output, the sharpest in eight months, attributed to a decrease in new orders. Additionally, due to reduced capacity, employment levels fell into contraction for the first time since February 2021.

4. China is planning to approve over 1 trillion yuan (US$137 billion) in additional sovereign debt issuance on Tuesday, sources informed Reuters. Beijing's move is part of its intensified efforts to boost infrastructure spending and stimulate economic growth. The Chinese government aims to announce these plans as early as late Tuesday and commence the issuance of debt in November. These measures are part of the government's strategy to support the economy during periods of slowdown.

5. The Hang Seng and FTSE 100 is down by 0.72% and 0.37%.

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