Global Factors influencing ASX stocks on 06 December 2023

On 06 December 2023, at AEDT 12:20 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 64.30 points or 0.91%, and is currently trading at 7,125.90 levels. Out of 11 sectors, 10 are trading higher along with the S&P/ASX 200. The Consumer Staples and A-REIT sectors were the top 2 gaining sectors, up by 1.68% and 1.43% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.91%; All 11 Sectors Are Trading In Green

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 higher by 0.31%, 0.24%, while Dow jones, and S&P 500 ended lower by 0.22%, and 0.06% respectively.

2. On Tuesday, the Dow experienced a decline, but the influence of rising tech stocks tempered the downward momentum, especially as Treasury yields decreased following a report indicating a two-year low in labor demand. The JOLTS report revealed a decrease in job openings in the world's largest economy, dwindling to 8.7 million by the end of October, down from 9.553 million the previous month, marking the lowest level in two years.

3. The API's Tuesday report revealed an unexpected rise in U.S. crude inventory last week, sparking worries about a potential surplus in global crude supply. This increase contrasts with weaker-than-anticipated commitments from major oil producers to reduce output the previous week. Specifically, U.S. crude inventories grew by 594,000 barrels for the week ending on December 1st. This contrasts sharply with the API's report from the prior week, which indicated a draw of 817,000 million barrels. Economists had projected a decline of approximately 2.3 million barrels, highlighting the unpredicted nature of this inventory shift.

4. According to a monthly Reuters Tankan survey, sentiment among major Japanese manufacturers experienced a significant surge, marking the second consecutive month of improvement. This positive trend is attributed to the ongoing recovery in the auto sector, rebounding from the challenges posed by last year's semiconductor shortage and supply chain disruptions. The findings from the survey are expected to strengthen the belief that Japan's economy is reaching a bottom after contracting by a preliminary annualized rate of 2.1% in the July-September quarter. Economists are optimistic about the prospect of moderate growth in the current quarter, with a boost anticipated from increased capital expenditure.

5. The Hang Seng and FTSE 100 is down by 1.91% and 0.31%.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com