The Trade: Bitcoin outlook amid Nasdaq gains and ASX 200 volatility
IG's Tony Sycamore explores the Nasdaq's resilience to tariff threats, ASX 200's market challenges, and Bitcoin's future outlook.
(AI video summary)
This video was created on 27 November for IG audiences by ausbiz.
Nasdaq's resilience amid tariff threats
The Nasdaq 100 recently rose by 0.6%, showing resilience in the face of renewed tariff threats from President-elect Donald Trump. Technology stocks, often seen as less susceptible to tariffs, led this rebound.
While the Dow Jones performed well earlier in the week, Trump's tariff threats prompted traders to adopt a cautious approach.
Nevertheless, the Nasdaq continues its gradual climb towards record highs, benefiting from the seasonally strong market period. This steady progress, though less exciting compared to other indices, indicates potential for further gains as the year ends.
ASX 200 faces challenges from tariffs and banking sector
The ASX 200 has experienced fluctuations, recently pulling back after reaching record intraday highs.
Trump's tariff threats, including a proposed increase to a 27% average on Chinese goods, have added to market volatility. However, the primary driver of the ASX 200's recent decline appears to be the banking sector's response to Australian Prudential Regulation Authority's (APRA) decision to maintain a 3% service buffer on new loans.
Despite these setbacks, the ASX 200 remains resilient, with potential to push higher if support at 8300 holds.
Bitcoin's rally slows down
Bitcoin's recent rally fell short of the $100,000 mark, leading to a pullback. This retracement is seen as a natural market correction, with expectations of a retest of the $100,000 level in the coming weeks.
The presence of a pro-crypto president in the White House bolsters long-term optimism for Bitcoin.
Crude oil price remains stagnant
Crude oil is struggling to break above $72.50. Thisdue to headwinds from geopolitical developments like the potential ceasefire between Israel and Hezbollah and Trump's focus on increasing United States (US) oil and natural gas supplies.
The oil market is currently range-bound, awaiting a catalyst to break out of this pattern.
Aussie dollar reacts to tariffs and Fed outlook
The Australian dollar has reacted to Trump's tariff threats and Federal Open Market Committee (FOMC) minutes, which suggest a cautious stance on future Federal Reserve (Fed) interest rate cuts.
The Aussie dollar saw a brief dip below $0.6440 but has since rebounded. However, traders remain cautious, with potential for further downside if inflation data disappoints.
The market is closely watching key support levels to gauge the currency's next move.
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