Global Factors influencing ASX stocks on 29 November 2023

On 29 November 2023, at AEDT 01:20 PM, the benchmark index S&P/ASX 200 is trading higher today, gaining 15.60 points or 0.22%, and is currently trading at 7,030.80 levels. Out of 11 sectors, 9 are trading higher along with the S&P/ASX 200. The Health Care and Consumer Discretionary sectors were the top 2 gaining sectors, up by 1.44% and 0.68% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.45%; Buoyed By CPI Data

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, Dow jones, and S&P 500 ended higher by 0.29%, 0.30%, 0.24%, and 0.10% respectively.

2. On Tuesday, the Dow recorded an uptick, supported by a decrease in Treasury yields, as comments with a dovish tone from certain Federal Reserve officials heightened expectations of impending rate cuts. The primary Wall Street indices are poised to register substantial gains in November, with the DJIA projected to conclude the month 6.9% higher, the S&P 500 advancing by 8.5%, and the Nasdaq, known for its tech focus, surging by 10.8%. Federal Reserve Board Governor Christopher Waller expressed growing confidence that the current policy is effectively positioned to moderate economic growth and steer inflation back toward the targeted 2%.

3. Jabil (JBL) shares experienced a significant after-hours decline, plummeting over 9% following the company's revised guidance. The update cited weakened demand in the latter part of Q1, attributed to short-term inventory adjustments in specific markets. The revised projection anticipates Q1 revenue between US$8.3 billion and US$8.4 billion, slightly below the initial range and worse than the consensus estimates of US$8.74 billion. Core EPS for Q1 is expected to align closely with the midpoint of the forecast from September.

4. Rising expectations of U.S. rate cuts in the coming year prompted hedge funds to scale back their optimism on the dollar. According to Commodity Futures Trading Commission data, funds decreased their net long position against major and emerging currencies from US$10 billion to US$4.5 billion in the week ending November 14. This significant US$5.5 billion week-on-week swing is the second-largest observed this year, coinciding with evolving Fed rate cut projections.

5. The Hang Seng and FTSE 100 is down by 0.98% and 0.07%.

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