ASX 200 afternoon report: 7 November 2024

The ASX 200 trades 17 points (-0.22%) lower at 8181 as of 2.00pm AEDT.

The ASX 200 has struggled to hold above 8200 for a second consecutive day as traders consider the potential impact of the US election outcome on the Australian economy and the index.

US trade policy impact

Unlike areas such as taxation and fiscal policy, the United States (US) President has significant influence over trade policy, making it a crucial way for election results to affect global markets.

Republican Donald Trump’s pre-election platform included plans for 10% universal tariffs on 'most' imports, including those from allies like the European Union (EU) and Japan. Trump also indicated he would raise tariffs on Chinese imports to 60% or higher if re-elected.

Concerns from Australian business leaders

In light of the election result, several Australian business leaders have expressed concerns this morning about the potential impact of a trade war between the US and China on Australia.

While these concerns are valid, Chinese officials may consider a larger fiscal stimulus package to support their economy, potentially cushioning the impact of US tariffs on Chinese goods and reducing flow-on effects to the Australian economy.

ASX 200 stocks
Materials sector

The big miners rallied today, perhaps sharing the view that China may respond with supportive measures.

• Mineral Resources surged 4.25% to $38.79
• Fortescue added 2.9% to $19.42
• Rio Tinto climbed 2.05% to $121.81
• BHP rose 1.3% to $43.15

Energy sector

Energy stocks have also seen gains, driven by speculation over potential US sanctions on Iranian and Venezuelan oil under Trump’s presidency. Additionally, Hurricane Rafael has intensified to a Category three storm in the US Gulf Coast, raising concerns about crude oil supply.

• Beach Energy added 2.61% to $1.27
• Woodside Energy gained 2.21% to $24.01
• Santos rose 1.88% to $6.76
• Ampol climbed 1.11% to $28.18

Real estate sector

Following the Republican election victory, a surge in global yields has put pressure on Australian property stocks.

• Charter Hall slid 4.41% to $14.64
• GPT Group declined 4.2% to $4.44
• Stockland dropped 2.66% to $4.94
• Goodman Group fell 2.5% to $35.31

Gold mining

Gold miners have also felt the impact, as higher yields and a stronger US dollar following the election have driven bullion prices down over 3% overnight to $2656.

• Gold Road Resources plunged 7.61% to $1.76
• Evolution Mining lost 6.36% to $4.87
• Perseus Mining fell 6.57% to $2.56
• Northern Star Resources slipped 6.25% to $16.52

Healthcare sector

• Sigma Healthcare’s share price skyrocketed 23.4% to $2.40, after the Australian Competition and Consumer Commission (ACCC) greenlighted its merger with Chemist Warehouse.

ASX 200 technical analysis

The ASX 200 continues to trade below multi-month trend channel resistance, which currently resides in the 8365 area and (for all but a few hours on Friday) above important support at 8110 - 8100.

A sustained break of either of these levels is needed to indicate in which direction the ASX 200’s next significant move will come.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 7 November 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}