Global Factors influencing ASX stocks on 28 July 2023

On 28 July 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 75.00 points or 1.01%, and is currently trading at 7,380.90 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The A-REIT and financial sectors were the top 2 declining sectors, down by 1.40% and 1.00% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Lower By 0.82%; More Sectors Are In The Red Zone          

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 0.55%, 0.22%, 0.64%, and 0.67% respectively.

2. On Thursday, oilfield service providers indicated a potential recovery in rig count, a crucial indicator of future production, in the later part of this year, attributing it to the rise in oil and gas prices. During the second quarter, U.S. shale producers significantly reduced drilling and well completions, resulting in reduced demand for equipment and services. Nevertheless, with U.S. crude prices rebounding to US$80 per barrel, service companies are optimistic about a resurgence in demand and are making bets accordingly.

3. Data released on Friday revealed that core inflation in Japan's capital decelerated in July, although it still maintained a significant margin above the central bank's targeted 2%. This ongoing situation puts pressure on policymakers to consider scaling back the current ultra-loose monetary policy.

4. Official data presented on Friday indicated that South Korea's factory production experienced a larger-than-expected decline in June, primarily driven by decreases in automobile and petroleum production.

5. The Hang Seng and FTSE 100 is up by 1.41% and 0.21%.

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