ASX Gains as US Dollar Strengthens Amid Election Influence

Highlights 

• Australian shares rally, led by consumer discretionary sector
• US dollar strengthens as early election results favor Trump
• Nasdaq rises with notable gains in tech stocks

The Australian share market saw a broad rally on Wednesday afternoon, mirroring strong momentum from Wall Street. The S&P/ASX 200 Index advanced by 0.9% or 76 points, reaching 8207.8 by 2:21 pm AEDT. All 11 sectors on the ASX showed gains, signaling widespread confidence across industries. 

Leading the charge was the consumer discretionary sector, which recorded a 1.4% rise. Key players such as Wesfarmers (ASX:WES) surged by 1.6%, while electronics and appliance retailer JB Hi-Fi (ASX:JBH) saw a 2.4% increase. Financial institutions were also on an upward trajectory, with National Australia Bank (ASX:NAB) rising by 1.2%, reflecting strong investor sentiment in the banking sector. 

In currency markets, the US dollar strengthened to its highest level since July. This boost came as early US presidential election results indicated Donald Trump was leading in pivotal states, reinforcing demand for trades tied to his policies on trade protectionism. The rising dollar pressured the Australian dollar, which slipped to 66 US cents. 

In a statement, TD Securities highlighted the potential for this election to be one of the closest in US history, comparing it to the tight race of 2000. The outcome could have lasting impacts on global markets, especially as it relates to trade and policy strategies. 

Meanwhile, Wall Street posted robust gains overnight, with the Nasdaq up by 1.4%. This jump was fueled by an impressive near 3% surge in Nvidia (NASDAQ:NVDA) stock, propelling the chipmaker past Apple (NASDAQ:AAPL) to become the most valuable company globally, with a market cap reaching $3.43 trillion. The Dow Jones Industrial Average climbed 1%, while the S&P 500 rose 1.2%, showcasing a broader trend of positive momentum across major indices. 

Key stocks to watch in the coming days include Goodman Group (ASX:GMG), which provided an update projecting a 9% growth in operating earnings per share for FY25. The industrial real estate giant also forecasted a full-year distribution of 30 cents per share, prompting a 0.2% rise in its stock. Additionally, major companies such as Domain Holdings (ASX:DHG), Domino’s Pizza (ASX:DMP), Fortescue Metals Group (ASX:FMG), and IGO Ltd (ASX:IGO) are scheduled for annual general meetings on Wednesday, which could bring further updates on their operational strategies and market outlook. 

This optimistic trading session underscores the influence of global events on the Australian market, where strong sector performance and currency shifts highlight the interconnected nature of global finance. As market players monitor developments, particularly those tied to the US election, volatility could shape trends in both domestic and international markets.