Global Factors influencing ASX stocks on 31 October 2023

On 31 October 2023, at AEDT 12:25 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 26.00 points or 0.38%, and is currently trading at 6,798.90 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The A-REIT and Consumer Staples sectors were the top 2 gaining sectors, up by 1.15% and 0.88% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.32%; Buoyed By A-REIT 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 higher in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones, and S&P 500 ended higher by 1.16%, 1.09%, 1.58%, and 1.20% respectively.

2. The Dow surged as big tech led the way, anticipating Apple's upcoming earnings and the Federal Reserve's decision later in the week. Treasury yields rose as investors awaited Wednesday's refunding announcement, which outlines plans for note and bond sales. The market momentum was driven by optimism surrounding tech giants and anticipation of key economic events, shaping the day's trading activity on Monday.

3. Oil prices in Asian trading increased slightly on Tuesday, recovering from a nearly 3% drop in the previous session due to reduced concerns about Middle East supplies. Focus has shifted to upcoming Chinese economic data and a Federal Reserve meeting. The decline occurred because the Israel-Hamas conflict did not immediately escalate, leading traders to reduce the risk premium related to the conflict. Initial fears of broader Middle Eastern involvement disrupting oil supplies have not materialized yet.

4. During its policy meeting on Tuesday, the Bank of Japan is expected to raise its inflation forecasts and explore adjustments to its bond yield control. This move comes as there are increasing anticipations that the controversial monetary tool's usage is coming to an end. Following a report by the Nikkei newspaper, the Japanese yen strengthened against the dollar, reaching a two-week high. The report indicated that the BOJ would contemplate modifications to its yield curve control (YCC) during the two-day meeting ending on Tuesday.

5. The Hang Seng and FTSE 100 is up by 0.04% and 0.50%.

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