AUS
NZ
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IND
Highlights:
S&P/ASX 200 gains 0.83%, driven by sectors with exposure to US earnings.
Stocks linked to former President Trump’s lead in early US election results outperform.
Mining and energy stocks face headwinds, particularly battery metals companies.
The S&P/ASX 200 closed 67.7 points higher on Wednesday, November 6, 2024, marking a 0.83% gain. The broader market also showed positive momentum, with the All Ordinaries and Small Ordinaries up by 0.81% and 0.94%, respectively. A significant factor influencing market movement was the early results of the US presidential election, where former President Donald Trump’s lead appeared to fuel optimism in certain sectors.
Markets with exposure to US earnings, particularly in technology, financials, and consumer discretionary, performed strongly. This includes notable gains for companies like Zip Co. (ZIP), Bluescope Steel (BSL), and Light & Wonder (LNW), Alcoa Corporation (ASX:AAI) which benefitted from the perception that a Trump presidency would be more favorable for US-based businesses. Stocks tied to the technology sector, which saw a 1.89% rise, along with financials (+1.61%) and consumer discretionary (+1.54%), were some of the best-performing segments of the day.
Conversely, mining and energy stocks saw declines, particularly those with exposure to battery metals. This trend reflected concerns over potential new tariffs on Chinese EV manufacturers under a Trump administration, as well as the possibility of cuts to domestic EV-related subsidies in the US. Stocks such as Ioneer (INR), Chalice Mining (CHN), and Liontown Resources (LTR) were among the hardest hit, all registering notable losses on the day.
The energy sector also experienced a decline, with companies like Woodside Energy (WDS) and Beach Energy (BPT) falling in response to the broader market dynamics. These moves reflect the market’s assessment of potential risks associated with a shift in US-China trade relations under a potential Trump-led administration.
Overall, today’s market action highlighted a clear divide between sectors benefiting from expectations of a stronger US economy and those more exposed to geopolitical risks, particularly within the mining and energy sectors. As the US election continues to unfold, market sentiment will likely remain fluid, with potential shifts based on the outcome.
