Global Factors influencing ASX stocks on 12 December 2023

On 12 December 2023, at AEDT 11:46 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 34.80 points or 0.48%, and is currently trading at 7,233.80 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The Consumer Staples and Information Technology sectors were the top 2 gaining sectors, up by 0.86% and 0.76% in their index values.

Also read: Global Factors influencing ASX stocks on 12 December 2023

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 0.20%, 0.85%, 0.43%, and 0.39% respectively.

2. China's leaders, including President Xi Jinping, are in a closed-door meeting for the annual Central Economic Work Conference to discuss economic targets and stimulus plans for 2024. The conference holds significance as China grapples with challenges like a housing crisis, local government debt, global economic slowdown, and geopolitical tensions. Investors keenly await insights into next year's policy and reform agenda, crucial for China's economic recovery and global standing.

3. Shares of Oracle plunged by over 9% in after-hours trading following the release of the company's Q2 results. The decline was triggered by a reported shortfall in quarterly revenue, which was attributed to challenges in the economic environment and increased competition in the cloud computing sector, leading to reduced demand for Oracle's cloud services.

For Q2, Oracle disclosed revenue of US$12.9 billion, reflecting a 5% year-over-year increase but falling short of the consensus estimate of US$13.05 billion. Earnings per share (EPS) came in at US$1.34, slightly surpassing the consensus estimate of US$1.33. The market response underscores concern about Oracle's performance amid evolving industry dynamics and competitive pressures in the cloud services market.

4. Australia's mid-year budget update, set for release on Wednesday, reveals approximately AU$10 billion (US$6.56 billion) in savings, according to official data on Tuesday. The government aims to curb high inflation through spending cuts. The Mid-Year Economic and Fiscal Outlook indicates that the federal Labor government has successfully restrained spending, bringing the total savings since the 2022 election to AU$49.6 billion. This fiscal measure demonstrates the government's commitment to managing economic challenges and maintaining fiscal responsibility in the face of inflationary pressures. The update will provide insights into Australia's economic trajectory and the government's strategies for financial stability.

5. The Hang Seng and FTSE 100 is down by 0.81% and 0.13%.

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