Global Factors influencing ASX stocks on 15 December 2023

On 15 December 2023, at AEDT 11:29 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 60.00 points or 0.81%, and is currently trading at 7,437.90 levels. Out of 11 sectors, 8 are trading higher along with the S&P/ASX 200. The Materials and Energy sectors were the top 2 gaining sectors, up by 1.65% and 1.49% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.75%; Lifted By Materials

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, Dow jones, S&P 500 ended higher by 0.19%, 0.43%, 0.26%, while NASDAQ-100 ended lower by 0.15% respectively.

2. The Dow achieved consecutive record highs, extending the post-Fed rally. Despite concerns about the rapid ascent, the Dow, S&P 500, and Nasdaq surpassed "overbought" levels on the RSI. The intraday surge followed the Federal Reserve's projection of three rate hikes next year, with Chairman Jerome Powell indicating a potential discussion on rate cuts.

3. Signature Bridge Bank, under the Federal Deposit Insurance Corp, has sold a 20% equity stake in a venture managing a US$16.8 billion real estate loan portfolio retained in the receivership of a failed bank. Notably, Blackstone Real Estate Income Trust, along with the Canada Pension Plan Investment Board and other investors, has acquired this equity stake for US$1.2 billion.

4. In December, Japan's factory activity contracted for the seventh consecutive month, according to a business survey. The au Jibun Bank flash Japan Manufacturing Purchasing Managers' Index (PMI) dropped to 47.7 from November's 48.3. This represents the swiftest deterioration in the index in the past 10 months. The index has consistently stayed below the 50.0 threshold, indicating contraction, for seven consecutive months. Meanwhile, the service sector saw modest gains, but overall growth was restrained due to weak demand and price pressures.

5. The Hang Seng and FTSE 100 is up by 1.07% and 1.33%.

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