ASX Gains as Trump Boosts Crypto: Christmas Market Update
The Australian market saw a slight uptick in early morning trade, with the S&P/ASX200 climbing 9.10 points, or 0.11%, to 8,471.70 points at 10.31am AEDT. This positive movement comes on the heels of US President-elect Donald Trump’s decision to appoint a pro-crypto advocate to lead the Securities and Exchange Commission, sending Bitcoin soaring to US$99,000 ($153,908) overnight. Meanwhile, US Federal Reserve Chairman Jerome Powell hinted at a possible December rate cut, although he emphasized the strength of the US economy.
Expert Insights: Impact on Market Sentiment
Evercore ISI’s Krishna interpreted Powell’s comments as “slightly hawkish,” suggesting a note of caution in the market’s optimism for a December rate cut. Expectations for a quarter-point rate cut have risen to 75.5%, indicating a growing belief in this outcome. ANZ analysts have observed a shift in the Fed’s approach to interest rate reductions, with some policymakers advocating for a more cautious stance.
Gold’s Resurgence and Market Performance
Gold prices have surged amidst political turmoil in France and South Korea, reaching US$2,653. This uptick in safe-haven demand has influenced investor behavior, with many adopting a cautious stance ahead of the US nonfarm payroll data release. In the Australian market, the consumer discretionary sector led the way with a 0.27% gain, while materials experienced a slight decline.
Market Movers: Top Performers and Laggards
Notable performers in the market included gold producers such as West African Resources (ASX:WAF), Genesis Minerals (ASX:GMD), and Westgold Resources (ASX:WGX), all posting significant gains. On the other hand, miners like Liontown Resources (ASX:LTR), Champion Iron (ASX:CIA), and Whitehaven Coal (ASX:WHC) faced declines, reflecting a mixed performance across sectors.
As the ASX continues to navigate global economic uncertainties and policy shifts, investors are closely monitoring these developments for potential opportunities and risks.
Write to Angela East at Mining.com.au for more insights and analysis on the latest market trends.
Images: ASX & Unsplash
