Global Factors influencing ASX stocks on 28 September 2023

On 28 September 2023, at AEST 11:40 AM, the benchmark index S&P/ASX 200 is trading lower today, declining 4.40 points or 0.06%, and is currently trading at 7,025.90 levels. Out of 11 sectors, 10 are trading lower along with the S&P/ASX 200. The Utilities and A-REIT sectors were the top 2 declining sectors, down by 0.56% and 0.46% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.23%; Buoyed By Energy Sector

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 mixed in their previous session. NASDAQ Composite, S&P 500, NASDAQ-100 ended higher by 0.22%, 0.02%, 0.24%, while Dow jones ended lower by 0.20% respectively.

2. On Wednesday, the Dow finished lower as surging Treasury yields continued to exert pressure on stocks, although the tech sector managed to trim some losses, offering a glimmer of hope. The direction of the market remains heavily influenced by Treasury yields, especially after the 10-Year Treasury yield reached 4.63%, hitting a new 15-year high. The uptick in yields is fuelled by growing concerns that the Federal Reserve might need to raise interest rates once more later in the year. This concern arises from indications of a robust economy, which could potentially sustain elevated inflation levels.

3. In the early hours of Thursday, oil prices climbed in Asian trading following their substantial increase in the previous session, reaching their highest settlement for 2023. This surge was driven by a significant decline in U.S. crude inventories, further amplifying concerns about global supply constraints. Government data revealed a notable reduction of 2.2 million barrels in U.S. crude stocks last week, bringing the total to 416.3 million barrels. This decline far surpassed the 320,000-barrel decrease anticipated by analysts in a Reuters poll.

4. Over the last four weeks, a growing number of Britons have been reaching out to estate agents to inquire about potential home purchases. This uptick in interest coincided with a decline in mortgage rates, breaking a trend that had persisted since April. Property website Zoopla reported a 12% increase in the volume of viewing inquiries for properties listed by estate agents on its platform during this period. However, it's worth noting that despite the recent rise, this figure remained one-third lower compared to the same period a year ago.

5. The Hang Seng is up by 0.83% and FTSE 100 is down by 0.43%.

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