Global Factors influencing ASX stocks on 11 December 2023

On 11 December 2023, at AEDT 11:26 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 19.80 points or 0.28%, and is currently trading at 7,214.70 levels. Out of 11 sectors, 10 are trading higher along with the S&P/ASX 200. The Energy and Industrials sectors were the top 2 gaining sectors, up by 0.96% and 0.47% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.26%; Lifted By Energy

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 0.45%, 0.39%, 0.36%, and 0.41% respectively.

2. On Monday, Asian shares began cautiously as investors anticipated a week filled with central bank meetings and crucial U.S. inflation data, shaping expectations for potential rate cuts in the coming year. The optimistic payrolls report has already led investors to revise down expectations for a March cut by the Federal Reserve, with May currently priced at a 76% chance. The Fed is expected to maintain rates at 5.25-5.50% this week, shifting attention to the "dot plots" for rate projections and Chair Jerome Powell's press conference. The outcomes will likely influence market sentiments regarding the possibility of early and swift rate adjustments.

3. Make UK reports a notable recovery in Britain's manufacturing sector, citing a significant threefold increase in output compared to order growth in the final quarter of 2023. The surge is attributed to a long-awaited burst of restocking and an uptick in export orders, offering a positive outlook for struggling factories. This rebound marks a promising development amid the challenges facing the sector.

4. In November, China experienced its most significant consumer price decline in three years, with a 0.5% drop compared to the same month last year and October, according to data from the National Bureau of Statistics (NBS). This surpassed median forecasts of 0.1% declines, reflecting growing deflationary pressures. Factory-gate deflation also intensified, raising concerns about the economic recovery as weak domestic demand contributes to the challenging economic environment. The year-on-year Consumer Price Index (CPI) decline was the most substantial since November 2020, indicating persistent economic challenges.

5. The Hang Seng is down by 0.07% and FTSE 100 is up by 0.54%.

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