Mid-Market: S&P ASX 200 Trading Higher By 0.23%; Ahead Of RBA Monetary Policy Decision

On 06 November 2023, at AEDT 11:31 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 22.60 points or 0.32%, and is currently trading at 7,000.80 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The Health Care and Information Technology sectors were the top 2 gaining sectors, up by 1.68% and 1.01% in their index values.

Also read:Mid-Market: S&P/ASX 200 Trading Higher By 0.23%; Ahead Of RBA Monetary Policy Decision

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 1.38%, 1.21%, 0.66%, and 0.94% respectively.

2. In Monday's Asian trade, oil prices increased as concerns about additional Federal Reserve rate hikes eased. However, traders remained cautious due to upcoming economic data, particularly from China. The market also responded positively to the commitment of major suppliers Saudi Arabia and Russia to maintain ongoing supply reductions until the year-end, indicating tighter oil markets. Despite recent losses driven by reduced risk premium from the Israel-Hamas conflict, fears of supply disruptions in the Middle East had not materialized.

3. A recent business survey revealed that Japan's services sector grew at its slowest rate in October this year. The final au Jibun Bank Service Purchasing Managers' Index (PMI) dropped to 51.6 from September's 53.8, indicating weakening demand and raising concerns about the sector's contribution to economic growth.

4. Asia is set to begin this week much like the previous one, as confidence in the U.S. economic 'soft landing' and the decline in the dollar and U.S. bond yields bolster risk assets and investor sentiment. The upcoming week in the region is packed with significant economic and policy events, particularly from China, including the release of October's import and export data on Tuesday, followed by key indicators like bank lending, credit, money supply, producer price inflation, and consumer price inflation on Thursday. These releases are expected to strongly influence local assets.

5. The Hang Seng is up by 2.52% and FTSE 100 is down by 0.39%.

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