Global Factors influencing ASX stocks on 01 December 2023

On 01 December 2023, at AEDT 12:45 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 40.10 points or 0.57%, and is currently trading at 7,047.20 levels. All 11 sectors are trading lower along with the S&P/ASX 200. The Information Technology and Health Care sectors were the top 2 declining sectors, down by 1.12% and 0.82% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Lower By 0.61%; All 11 Sectors Are In Red Zone

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, NASDAQ-100 ended lower by 0.23%, 0.25%, while Dow jones and S&P 500 ended higher by 1.47% and 0.38% respectively.

2. In November, the Dow Jones Industrial Average surged 8%, marking its strongest month since October of the previous year. The S&P 500 gained almost 9%, and the Nasdaq, driven by technology stocks, soared by 10.7%. Both the S&P 500 and Nasdaq achieved their most impressive monthly performances since July 2022. Investors celebrated a deceleration in inflation and generally positive corporate earnings, contributing to the robust market performance. The month's swashbuckling gains reflect an optimistic sentiment and buoyancy in the financial markets.

3. Alberta, Canada, anticipates a heightened surplus of C$5.5 billion for 2023/24, boosted by strong bitumen royalties and increased income tax revenues, surpassing earlier projections of C$3.2 billion. However, the province remains cautious about potential impacts from volatile oil prices, persistent inflation challenges, and global economic uncertainties, warning of elevated debt servicing costs due to higher interest rates.

4. In the third quarter, Japanese companies exhibited a notable increase in capital expenditure and achieved strong profits, according to Friday's data. This trend indicates that robust investment could mitigate the impact of subdued consumption, potentially averting the risk of a recession. The positive corporate performance may prompt an upward revision of preliminary gross domestic product (GDP) data, revealing a contraction in the world's third-largest economy for the first time in three quarters from July to September.

5. The Hang Seng and FTSE 100 is up by 0.29% and 0.41%.

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