Global Factors influencing ASX stocks on 05 December 2023

On 05 December 2023, at AEDT 12:20 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 59.60 points or 0.84%, and is currently trading at 7,065.10 levels. Out of 11 sectors, 9 are trading lower along with the S&P/ASX 200. The Materials and Consumer Discretionary sectors were the top 2 declining sectors, down by 2.08% and 1.36% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Lower By 0.98%; CMM Is Declining By More Than 9%

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 lower in their previous session. NASDAQ Composite, NASDAQ-100, Dow jones, and S&P 500 ended lower by 0.84%, 0.99%, 0.11%, and 0.54% respectively.

2. The Dow closed lower on Monday as technology stocks weakened amid rising Treasury yields. Growth sectors, particularly in tech, took a break from recent gains as investors reassessed expectations for rate cuts. Focus shifted to key economic data, including the forthcoming US jobs report and University of Michigan data, heightening market uncertainties.

3. GitLab shares saw a significant after-hours surge, rising over 17% following the release of the company's Q3 results. The reported earnings per share (EPS) of US$0.09 exceeded the consensus estimate of (US$0.01). Revenue stood at US$149.7 million, surpassing the consensus estimate of US$141.53 million.

4. Consumer inflation in Tokyo eased more than anticipated in November, approaching the Bank of Japan's target range. The Tokyo core consumer price index, which excludes volatile items like fresh food, increased by 2.3%, falling from the previous month's 2.7%. This decline was more significant than expected, with projections at 2.4%. The easing inflation is attributed to a reduction in food prices from earlier highs in the year and stabilized import costs. The data, reported by the Statistics Bureau, indicates a moderation in inflationary pressures in Japan's capital, aligning with the central bank's goals.

5. The Hang Seng and FTSE 100 is down by 1.09% and 0.22%.

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