The Trade: impact of the US election on Nasdaq, Bitcoin, and oil markets
IG's Tony Sycamore shares his insights on the implications for Nasdaq, bitcoin, crude oil, ASX 200, and the Australian dollar.
(AI video summary)
This video was created on 6 November for IG audiences by ausbiz.
Volatility and positive momentum on Wall Street
Despite election-related uncertainty, the US session overnight displayed positive momentum, especially in tech stocks like Nvidia. Strong data from the October ISM manufacturing report supported markets, with the Nasdaq rising above 20,000, a critical support level. Investors, however, remain cautious as Nvidia's earnings announcement approaches on 21 November.
Bitcoin and cryptocurrency market movements
Cryptocurrencies are also feeling the impact of election developments. Trump’s pro-crypto stance could bring significant market shifts, with bitcoin recently peaking at 73,600 before a pullback driven by fluctuating poll results. Key support levels for bitcoin are between 67,000 and 65,000, and a Republican victory could drive further gains.
Crude oil market and geopolitical influences
Crude oil prices are under pressure from geopolitical factors, including a potential tropical storm in the Gulf of Mexico and possible retaliatory actions by Iran. Sycamore notes that these events, combined with the election outcome, could push crude prices toward the 200-day moving average at $77 if supply concerns intensify.
ASX 200 and Australian dollar outlook
The ASX 200 awaits US election results, with resistance at 8,370 to 8,380 and support around 8,100. A favourable election result could prompt a retest of resistance levels, while a drop below 8,100 might signal a deeper decline. The Australian dollar, holding steady at around 66.35 US cents after the Reserve Bank of Australia paused rates, could see swings to either 68.50 or 63.50 depending on the election outcome.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
