Global Factors influencing ASX stocks on 27 December 2023

On 27 December 2023, at AEDT 12:10 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 58.00 points or 0.77%, and is currently trading at 7,559.60 levels. All 11 sectors are trading higher along with the S&P/ASX 200. The Materials and Information Technology sectors were the top 2 gaining sectors, up by 1.17% and 0.87% in their index values.

Also read: Mid-Market: S&P/ASX 200 Sharply Higher By 0.71%; 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 0.54%, 0.43%, 0.60%, and 0.42% respectively.

2. As of Tuesday night, US stock futures indicate minimal change as investors watch the benchmark index's progress toward a record high. The stock market has had a strong year, with the Dow and S&P 500 poised to finish with gains of 13% and 24%, respectively, in the remaining three trading sessions of 2023. The Nasdaq Composite has notably surged by 44%, outperforming due to the resurgence of mega-cap technology and the increasing popularity of artificial intelligence. This positive momentum reflects a robust performance, capping off the year with substantial gains across major indices.

3. The United States has completed contracts to acquire three million barrels of oil, aimed at replenishing the Strategic Petroleum Reserve (SPR) following last year's largest-ever sale, as confirmed by the U.S. Department of Energy on Tuesday. The purchased oil is slated for delivery to a facility in Big Spring, Texas, and was acquired at an average cost of US$77.31 per barrel. This acquisition cost is notably below the 2022 average oil selling price of US$95 per barrel. The move is part of strategic efforts to bolster the SPR, ensuring a stable and resilient energy reserve for the nation.

4. U.S. stocks extended gains, starting the final week of 2023 with optimism about Federal Reserve interest rate cuts in March. Major indexes rose, led by megacap and chip stocks, with the S&P 500 reaching its highest level since January 2022. The eighth consecutive weekly gains were supported by easing inflation.

5. The Hang Seng is down by 1.69% and FTSE 100 is up by 0.04%.

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