ASX 200 closes 1% up as RBA eases Omicron fears

Highlights

  • The ASX 200 closed 1 per cent higher, up 68.8 points to 7313.9.
  • The RBA kept rates on hold at 0.1% and brushed away concerns about the Omicron variant.
  • Asian markets also performed strongly following their US peers and the crypto stance has gotten better since the weekend.

RBA governor Philip Lowe today stated that while Omicron brings uncertainty, it might not derail the Aussie recovery. He added that the Australian economy is expected to return to its pre-Delta path in the first half of 2022. Notably, the RBA has decided to hold official interest rates at a record low of 0.1 per cent and will stick with its AUD 4 billion-a-week government bond-buying program until February 2022.

Coming to the local bourse’s performance today, the ASX 200 closed up, gaining 68.80 points or 0.95 per cent to 7,313.90. Over the last five days, the index has gained 0.80 per cent and is currently 4.18 per cent off of its 52-week high. On the sectoral front, all sectors traded up, barring utilities. Energy was the best performing sector, gaining 2.38 per cent and 3.88 per cent for the past five days.

ASX closed 1% up today

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Top gainers and losers

The best performer today was Pointsbet Holdings (ASX:PBH), up 9.9 per cent. Next up was Zip Co (ASX:Z1P), up 9.6 per cent after releasing its monthly update. November was a strong month. The Company is now processing annualised volume of over AUD 10 billion. It has been re-branding its US business to Zip and the brand awareness there is higher than it had been before the re-branding.

Other top gainers of the day were Polynovo (ASX:PNV), Corporate Travel (ASX:CTD) and Codan Limited (ASX:CDA).

ASX 200 closes 1% up as RBA eases Omicron fears

 

On the red zone, Magellan Financial Group (ASX:MFG) topped the charts, down 5.6 per cent. Yesterday, Dr Brett Cairns resigned as Chief Executive Officer and Ms Kirsten Morton was appointed as Interim Chief Executive Officer. Nickel Mines (ASX:NIC) plummeted 4.8 per cent. Other stocks in red were Lynas Rare Earths (ASX:LYC), Perseus Mining (ASX:PRU).

Asian & global market

Today, Asian stocks remained strong following their US peers. Sentiment got better after China pledged steps to encourage growth and investors relaxed after optimistic comments on Omicron from industry experts.

MSCI Inc.’s gauge of APAC shares won for the first day in last three as Japan rose. Japan's Nikkei 225 climbed 1.1 per cent. South Korea's Kospi index was merely changed, Hang Seng increased 1.2 per cent and the Shanghai Composite further added 0.4 per cent.

Overnight, Wall Street's major averages closed higher. Economically sensitive sectors and travel stocks advanced as investors were encouraged by some optimistic comments from Dr. Anthony Fauci, the White House’s chief medical adviser. Dow Jones Industrial Average was up 1.87 per cent, S&P 500 increased 1.17 per cent, and Nasdaq Composite ended up adding 0.93 per cent.

Sinusoidal trends continue

Copyright © 2021 Kalkine Media

Crypto market performance

Cryptocurrencies were mostly lower yesterday, although market conditions have stabilised following the weekend sell-off. Over the last few hours, the global crypto market capitalisation rose 4.46 per cent to stand at USD 2.37 trillion.

Bitcoin is currently trading at USD 50,785.67. It was only a month ago when the price of Bitcoin was almost touching USD 70,000. Amongst other key cryptocurrencies, Ethereum rose by 4.33 per cent, Binance Coin rose by around 7.71 per cent, Solana rose by 1.21 per cent and Cardano by 5.57 per cent.

Well, the aggressive price shift in the digital asset marketplace indicates that investors could be prepping to enter into a risk-off mode as of now.

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