Global Factors influencing ASX stocks on 26 September 2023

On 26 September 2023, at AEST 11:31 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 33.80 points or 0.48%, and is currently trading at 7,042.70 levels. Out of 11 sectors, 7 are trading lower along with the S&P/ASX 200. The Materials and Utilities sectors were the top 2 declining sectors, down by 0.49% and 0.29% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.50%; Dragging Down By A-REIT And Tech 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 higher in their previous session. NASDAQ Composite, S&P 500, Dow jones, and NASDAQ-100 ended higher by 0.45%, 0.40%, 0.13%, and 0.46% respectively.

2. On Monday, the Dow staged a late rally, securing a modest gain. This uptick was driven by the tech sector, boosted by Amazon, and a significant surge in energy stocks. These factors allowed stocks to escape the pressure imposed by rising Treasury yields.

3. On Monday, crude oil prices stayed stagnant or slightly declined due to the dollar reaching a 10-month peak, and a lack of compelling reasons for oil purchases following last week's losses driven by worries about the Federal Reserve adopting an overly hawkish stance on U.S. interest rates. Although Russia made minor adjustments to its export ban, this news had a minimal impact on an unenthusiastic market. Those with long positions in crude oil argued that Moscow's announced changes did not significantly alter the overall ban's positive effect on oil.

4. On Monday, the United Kingdom inked a memorandum of understanding regarding trade with the U.S. state of Washington. A senior official mentioned that a comparable agreement with Florida might also be in the works. Initially, the UK had aspired to secure an extensive bilateral trade deal with the United States post-Brexit. However, given President Joe Biden's decision to pause all free trade agreement negotiations, the British government has opted to pursue trade agreements at the state level instead.

5. The Hang Seng and FTSE 100 is down by 1.82% and 0.78%.

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