Global Factors influencing ASX stocks on 04 December 2023

On 04 December 2023, at AEDT 11:55 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 87.40 points or 1.24%, and is currently trading at 7,160.60 levels. Out of 11 sectors, 9 sectors are trading higher along with the gain in the S&P/ASX 200. The material and information technology sectors are the top 2 gaining sectors, gaining 1.94% and 1.81% in their index values.

Also Read: Mid-Market: S&P/ASX 200 Sharply Higher By 1.24%; Mirroring US Markets Gains

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, Dow industrial, and S&P 500 gained 0.55%, 0.31%, 0.82%, and 0.59%, respectively.

2. Bitcoin soared to $40,085, its highest in about 18 months, driven by optimism over potential approval of stock-market traded Bitcoin funds by U.S. regulators.

3. The attack on an American warship and commercial vessels in the Red Sea on Sunday raises concerns among investors about escalating tensions between Israel and Hamas. This situation could complicate the outlook for the recent stock market rally that led to a fresh closing high for U.S. stocks last week.

4. Gold prices surged to a record-breaking high, surpassing $2,100 due to expectations of imminent Fed rate cuts. Spot gold soared by almost 2% to reach an all-time high of $2,148.78 per ounce. Also, February gold futures spiked by 2% to hit a record high of $2,151.20 per ounce.

5. Alaska Air Group Inc announced its intention to purchase Hawaiian Holdings Inc for $1.9 billion, including debt. This move signals Alaska Air's bet on a challenged airline with profitable routes, amid U.S. antitrust regulators' opposition to consolidation in the sector.

6. Hang Seng is down by 1.25%, and FTSE 100 is up by 1.01%.

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