Global Factors influencing ASX stocks on 22 December 2023

On 22 December 2023, at AEDT 11:55 AM, the benchmark index S&P/ASX 200 is trading higher today, gaining 8.30 points or 0.11%, and is currently trading at 7,512.40 levels. Out of 11 sectors, 7 are trading higher along with the S&P/ASX 200. The Energy and Telecommunication Services sectors were the top 2 gaining sectors, up by 0.76% and 0.62% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.09%; Gaining By Energy And Tech Stocks

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 1.26%, 0.87%, 1.23%, and 1.03% respectively.

2. On Thursday, the Dow rebounded, fuelled by investor confidence in stock buying after a previous day's selloff. The surge was notably driven by the tech sector, led by Micron Technology. The chipmaker reported impressive quarterly results, surpassing market expectations. Micron's stock climbed over 8% as the company forecasted quarterly revenue that exceeded market estimates. The positive outlook was buoyed by indications of a memory chip recovery in 2024, signalling a potential upturn after one of the most significant downturns in years for the industry.

3. Oil prices dropped as Angola exited OPEC, signalling concerns about the cartel's collective ability to support prices through production limits. The move underscored uncertainties about OPEC's cohesion and raised questions about the effectiveness of the "OPEC put" in stabilizing the global oil market amid evolving geopolitical and economic factors.

4. In November, Japan witnessed a predictable easing in core consumer price index inflation, primarily influenced by declining food prices. The reading, in line with analysts' expectations, revealed a year-on-year rise of 2.5% in core CPI inflation, excluding volatile fresh food prices. This deceleration from the previous month's 2.9% print raises uncertainties about the timeline for the Bank of Japan to potentially initiate tightening measures amid its persistently ultra-loose policy.

5. The Hang Seng is up by 0.04% and FTSE 100 is down by 0.27%.

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