Global Factors influencing ASX stocks on 29 December 2023

On 29 December 2023, at AEDT 12:05 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 22.70 points or 0.30%, and is currently trading at 7,591.60 levels. Out of 11 sectors, 8 are trading lower along with the S&P/ASX 200. The Materials and Energy sectors were the top 2 declining sectors, down by 0.53% and 0.45% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.25%; Snapping A Two Day Rally

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, NASDAQ-100 ended lower by 0.03%, 0.05%, Dow jones, and S&P 500 ended higher by 0.14% and 0.04% respectively.

2. The S&P 500 closed marginally higher on the penultimate trading day of 2023, retracting early gains before the closing bell. It ended 0.3% below its Jan. 3, 2022 record close. The Dow marked a second consecutive record-high close, while the Nasdaq finished marginally lower. All indexes were poised for gains across monthly, quarterly, and annual periods.

3. On Thursday, oil prices declined by 3% following announcements from several shipping companies expressing readiness to navigate the Red Sea route. This alleviated worries about supply disruptions despite heightened tensions in the Middle East. Maersk from Denmark disclosed plans to redirect nearly all container vessels traveling between Asia and Europe via the Suez Canal, with only a few taking the longer route around Africa, as per a Reuters analysis of the company's schedule.

4. In December, South Korea's annual consumer inflation continued to ease for the second consecutive month, falling below market expectations. The Consumer Price Index (CPI) for the month increased by 3.2% compared to the same period a year earlier. This figure was slightly lower than the 3.3% rise recorded in November and fell short of the median expectation of a 3.3% increase in a Reuters survey. The data aligns with policymakers' expectations that price pressures will gradually ease throughout 2024, indicating a stable inflationary outlook.

5. The Hang Seng is up by 2.52% and FTSE 100 is down by 0.03%.

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