Global Factors influencing ASX stocks on 31 July 2023

On 31 July 2023, at AEST 11:35 AM, the benchmark index S&P/ASX 200 is trading up today, gaining 29.20 points or 0.39%, and is currently trading at 7,432.80 levels. Out of 11 sectors, 8 sectors are trading higher along with the S&P/ASX 200. The Information Technology and Health Care sectors were the top 2 gaining sectors, up by 0.29% and 0.28% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.35%; Buoyed By IT And Healthcare   

On that note, let us look at a few global reasons impacting the stock market today:

1. Key U.S. indices ended higher in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500, and Dow jones ended higher by 1.90%, 1.85%, 0.99%, and 0.50% respectively.

2. Near three-month highs, oil prices poised for significant monthly gains, anticipating Saudi Arabia's extension of voluntary output cuts into September and global supply tightening.

3. Expectations of a turbulent beginning for Asian stocks could dampen hopes of surpassing the strong gains witnessed the previous week. The potential stimulus in China, coupled with Japan's largest-ever minimum wage hike, and a glimmer of optimism about the global economy avoiding a recession, exert influence on the market sentiment.

4. During Sunday's evening deals, U.S. stock futures indicated an upward trend following the major benchmark averages' third consecutive week of gains. These averages reached 15-month highs, fuelled by robust earnings results and a reduction in inflation pressures, which positively influenced investor sentiment.

5. The Hang Seng and FTSE 100 is up by 1.41% and 0.02%.

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