Global Factors influencing ASX stocks on 19 December 2023

On 19 December 2023, at AEDT 11:50 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 32.50 points or 0.44%, and is currently trading at 7,458.90 levels. All 11 sectors are trading higher along with the S&P/ASX 200. The Energy and A-REIT sectors were the top 2 gaining sectors, up by 0.59% and 0.53% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.41%; All 11 Sectors Are Trading In Green Zone

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, Dow jones, NASDAQ-100, and S&P 500 ended higher by 0.61%, 0.00%, 0.64%, and 0.45% respectively.

2. The S&P 500 closed higher, defying efforts by Federal Reserve officials, including Chicago Fed President Austan Goolsbee and Fed President Loretta Mester, to moderate expectations for imminent rate cuts. Goolsbee expressed confusion over the market's response to last week's Fed meeting, while Mester emphasized the focus on the duration of restrictive monetary policy for inflation stability.

3. Oil prices saw an increase on Monday as Russia's commitment to deeper crude export cuts alleviated concerns about a supply surplus. Additionally, attacks by the Houthis on ships in the Red Sea raised worries about potential supply disruptions. Last week's gains followed a U.S. Federal Reserve meeting that raised expectations of interest rate cuts next year, ending a streak of seven consecutive losing weeks. The positive momentum continued into the new week after Russia announced plans to further cut oil exports in December, potentially by 50,000 barrels per day or more.

4. Nippon Steel shares experienced a nearly 5% decline early on Tuesday following the announcement of a US$14.9 billion cash deal to acquire U.S. Steel. Trading around 3,085 yen, the shares were down 4.7% from the previous day's close. The market response resulted in a glut of sellers after the open. The acquisition of U.S. Steel, which emerged victorious in an auction against competitors like Cleveland-Cliffs, positions Nippon Steel to advance toward achieving 100 million metric tons of global crude steel capacity. The share price movement reflects the initial market reaction to the significant deal.

5. The Hang Seng is down by 0.97% and FTSE 100 is up by 0.50%.

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