Global Factors influencing ASX stocks on 15 November 2023

On 15 November 2023, at AEDT 12:20 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 111.00 points or 1.58%, and is currently trading at 7,117.70 levels. Out of 11 sectors, 10 are trading higher along with the S&P/ASX 200. The A-REIT and Information Technology sectors were the top 2 gaining sectors, up by 3.15% and 2.92% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Higher By 1.59%; After US CPI Slows

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, S&P 500, and Dow jones ended higher by 2.37%, 2.13%, 1.91%, and 1.43% respectively.

2. Oil markets remained positive for a fourth consecutive day as October data revealed a moderation in US inflation, dampening expectations for a year-end rate hike. West Texas Intermediate (WTI) crude for December delivery, traded in New York, maintained its position at US$78.26 per barrel, having experienced a 3.8% increase over the past three sessions. However, for the previous week, WTI recorded a 4.1% decline, following back-to-back weekly losses of 6% and 3%. The US crude benchmark also witnessed an 11% drop in October.

3. The Dow concluded higher on Tuesday as declining Treasury yields paved the way for tech stocks to register gains following a lower-than-anticipated inflation report. The consumer price index for October showed a slowdown to 0% from the previous month's 0.4%, surpassing economists' expectations for a 0.1% reading. This lower-than-expected figure further reinforced the belief among investors that the Federal Reserve is unlikely to pursue additional interest rate hikes. Traders are now anticipating the Fed to maintain current rates and potentially implement the first rate cut in May. In response to the report, Treasury yields experienced significant drops, with the 2-year Treasury yield falling by 21 basis points to 4.832%, and the 10-year Treasury yield declining by 18 basis points to 4.455%.

4. The third-quarter contraction of the Japanese economy exceeded expectations, influenced by persistent inflation and a feeble yen that hampered private spending. Additionally, demand in Japan's major export markets deteriorated during this period.

5. The Hang Seng is down by 0.17% and FTSE 100 is up by 0.20%.

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