Global Factors influencing ASX stocks on 12 December 2022

On 12 December 2022, at AEDT 12.40 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 34.40 points or 0.48%, and is currently trading at 7,178.80 levels. Out of 11 sectors, 8 sectors are trading lower along with the S&P/ASX 200. The Utilities and Materials are the top 2 declining sectors, lower by 3.98% and 1.08% in their index values.

Also read-: Mid-Market: S&P/ASX 200 Trading Lower By 0.52%; Weighed Down By Heavy Losses In Utilities Sector

On that note, let us look at a few global reasons impacting the stock market today:

1. The key U.S. indices ended lower in their previous session. NASDAQ Composite, NASDAQ-100, Dow industrial and S&P 500 declined by 0.70%, 0.64%, 0.90% and 0.73% respectively.
2. Japan’s producer price inflation remained 41 years high amid a hike in raw material prices and weakness in Yen.
3. The dollar gained today following data showed producer prices in the United States rose more than anticipated last month, pointing to persistent inflationary pressures and stoking fears the Federal Reserve would need to keep rates higher for longer.
4. Gold prices dropped slightly below key levels, ahead of key U.S. inflation data and a Federal Reserve meeting this week, while uncertainty over rising COVID-19 cases in China weighed on copper prices.
5. China’s regulators and state-owned banks are splitting staff at their workplaces, as a possible spike in COVID cases after China relaxed virus restrictions in a major policy shift.
6. Oil prices rose more than 1% amid the Canada-United States crude pipeline remained closed while Russia cut production in retaliation against a Western price cap on Russian oil exports.
7. Hang Seng is trading flat, and FTSE 100 is up by 0.06%.

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