Global Factors influencing ASX stocks on 27 September 2023

On 27 September 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 27.20 points or 0.39%, and is currently trading at 7,011.00 levels. Out of 11 sectors, 10 are trading lower along with the S&P/ASX 200. The Health Care and A-REIT sectors were the top 2 declining sectors, down by 0.57% and 0.46% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.43%; Mirroring US Markets

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 lower in their previous session. NASDAQ Composite, S&P 500, Dow jones, and NASDAQ-100 ended lower by 1.57%, 1.47%, 1.14%, and 1.51% respectively.

2. Early in Wednesday's trading session, oil prices inched higher, with market attention centred on supply constraints in anticipation of the winter season and a gradual slowdown in the U.S. economy. According to industry data disclosed on Tuesday, there was an increase of approximately 1.6 million barrels in U.S. crude oil inventories last week, contrary to analysts' projections of a decline of around 300,000 barrels.

3. Bank of Japan policymakers reached a consensus on the importance of retaining an extremely accommodative monetary policy. However, there was a divergence of opinions regarding the timing of potentially discontinuing negative interest rates. During the July meeting, the BOJ retained its accommodative policy stance but introduced measures to permit greater flexibility in the upward movement of long-term borrowing costs, aligning with the growing trends in inflation and economic expansion.

4. The Dow Jones Industrial Average fell to its lowest point since March, driven by concerns over the economy stemming from a decline in consumer confidence. This decline comes at a time when consumers are grappling with the prospect of enduring higher interest rates and inflation, which could potentially curtail their spending habits. Additionally, Treasury yields remained elevated, hitting levels not seen in over a decade, with the 10-year yield hovering around approximately 4.55%.

5. The Hang Seng is down by 1.48% and FTSE 100 is up by 0.02%.

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