Global Factors influencing ASX stocks on 30 August 2023

On 30 August 2023, at AEST 11:30 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 60.80 points or 0.84%, and is currently trading at 7,271.30 levels. Out of 11 sectors, 8 sectors are trading higher along with the S&P/ASX 200. The Materials and Health Care sectors were the top 2 gaining sectors, up by 1.17% and 1.11% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.81%; Buoyed By Overseas 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 higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 1.74%, 2.15%, 1.45%, and 0.85% respectively.

2. API's early report suggests a potential 11.486 million barrels drop in U.S. crude oil stocks last week. Simultaneously, gasoline and distillate inventories increased as refineries ramped up production ahead of the Labour Day holiday, which typically signifies the peak of summer driving season.

3. On Tuesday, the Dow concluded in positive territory, accompanied by declining Treasury yields due to discouraging economic data. This data fuelled optimism that the Federal Reserve might abstain from raising interest rates in September. The ongoing reduction in Treasury yields was prompted by recent economic indicators, including an unforeseen decline in consumer confidence and an unexpected decrease in job openings. These factors have increased expectations that the Fed will maintain its current rate stance for September.

4. Tuesday witnessed a substantial uptick on Wall Street, propelled by mega cap growth stocks like Tesla and Nvidia. This surge was triggered by a decline in monthly job openings, solidifying the belief that the U.S. Federal Reserve is likely to hold off on interest rate hikes. These remarkable gains followed the release of the Labour Department's Job Openings and Labour Turnover Survey (JOLTS), revealing that job openings in July stood at 8.827 million. This marked the third consecutive monthly decline and indicated a reduction in labor market pressures.

5. The Hang Seng and FTSE 100 is up by 1.95% and 1.72%.

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