Global Factors influencing ASX stocks on 25 May 2023

On 25 May 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 65.50 points or 0.91%, and is currently trading at 7,148.80 levels. Out of 11 sectors, 10 sectors are trading lower along with the S&P/ASX 200. The Materials and A-REIT sectors were the top 2 declining sectors, declining 1.31% and 0.87% in their index values.

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

1. Key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended lower by 0.61%, 0.50%, 0.73%, and 0.77% respectively.

2. To raise the US$31.4 trillion debt ceiling and prevent a catastrophic default, negotiators for Democratic President Joe Biden and senior legislative Republican Kevin McCarthy met on Wednesday. Both parties hailed the discussions as positive.

3. Oil prices dipped in early Asian trading on Thursday as investors assessed the potential of additional OPEC+ output curbs against the prospect of the US avoiding a financial default.

4. Due to growing political tensions over the nation's debt ceiling, ratings agency Fitch announced on Wednesday that it had placed the United States' "AAA" credit rating under a negative credit watch.

5. The Hang Seng and FTSE 100 are down 1.62% and 1.75%.

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