Global Factors influencing ASX stocks on 25 October 2023

On 25 October 2023, at AEDT 12:30 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 19.40 points or 0.28%, and is currently trading at 6,837.50 levels. Out of 11 sectors, 7 are trading lower along with the S&P/ASX 200. The A-REIT and Utilities sectors were the top 2 declining sectors, down by 0.70% and 0.39% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.19%; After CPI Index Rose 1.2% In September Quarter

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 higher in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones, S&P 500 ended higher by 0.93%, 0.97%, 0.62%, 0.73% respectively.

2. On Tuesday, the Dow Jones closed higher due to strong corporate earnings and stable Treasury yields, boosting investor confidence in stocks. Technology shares, particularly Microsoft and Google, saw gains as investors anticipated their quarterly results after market hours.

3. Australian consumer inflation exceeded expectations in the third quarter, driven by a recent rise in oil prices leading to increased fuel costs. The Consumer Price Index (CPI) inflation grew by 1.2% in the third quarter compared to the previous quarter, according to data from the Australian Bureau of Statistics (ABS) released on Wednesday. This development has led to speculation that the Reserve Bank might have more reasons to consider raising interest rates.

4. On Wednesday, oil prices remained relatively stable, with signs of reduced U.S. supplies offsetting economic data indicating a weakened energy demand outlook. Brent crude futures inched up by 2 cents to reach US$88.09 a barrel, while U.S. West Texas Intermediate crude futures decreased by 5 cents to US$83.69 a barrel as of 0003 GMT. Despite these minor fluctuations, both benchmark prices had experienced declines in the three preceding sessions. Industry data, citing figures from the American Petroleum Institute, revealed a tightening of U.S. crude supplies by approximately 2.7 million barrels for the week ending on October 20.

5. The Hang Seng is down by 1.05% and FTSE 100 is up by 0.20%.

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