Global Factors influencing ASX stocks on 30 November 2023

On 30 November 2023, at AEDT 12:35 PM, the benchmark index S&P/ASX 200 is trading down today, declining 1.80 points or 0.03%, and is currently trading at 7,033.50 levels. Out of 11 sectors, 7 are trading lower along with the S&P/ASX 200. The A-REIT and Utilities sectors were the top 2 declining sectors, down by 1.64% and 1.48% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Higher By 0.05%; IRE Shares Climbs More Than 14%

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, S&P 500 ended lower by 0.16%, 0.14%, 0.09%, while Dow jones ended higher by 0.04% respectively.

2. On Wednesday, the Dow experienced a flat close, surrendering some gains but maintaining momentum for substantial November gains. Optimism surrounds the economy avoiding recession, coupled with expectations of early next year's Fed rate cuts. Treasury yields continued to decline, influenced by ongoing rate cut expectations. Federal Reserve Governor Christopher Waller's comments on Tuesday, asserting that the central bank's monetary policy is adeptly positioned to address inflation, contributed to this sentiment.

3. The Federal Reserve's Beige Book, released on Wednesday, indicates a deteriorating economic outlook due to recent slowing growth. Consumers are increasingly cautious with spending amid a softer labor market and a deceleration in inflation. Economic activity has slowed since the previous report, with retail sales decreasing, reflecting heightened consumer price sensitivity. The outlook for the next six to twelve months has diminished, according to the report.

4. Despite an unexpected increase in U.S. crude stockpiles, oil prices surged on Wednesday, driven by supply disruptions and anticipation of an OPEC+ meeting on future output policy. U.S. weekly crude stockpiles rose by about 1.6 million barrels, contrary to an expected draw of 933,000 barrels. Gasoline and distillate inventories also exceeded expectations, contributing to the price increase.

5. The Hang Seng and FTSE 100 is down by 2.08% and 0.43%.

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