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Market wrap: ASX200 jumps on Trump election

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Australian shares rose on Wednesday as the U.S election vote count showed a clear path to victory for former President Donald Trump.

Australian shares rose on Wednesday as the U.S election results showed former President Donald Trump was on track to return to politics.

The benchmark ASX200 index rose 67.7 points, or 0.83 per cent, to 8199.5 points, while the broader All Ordinaries index gained 68.2 points, or 0.81 per cent, to 8456 points.

The All-Tech Index surged 2.24% to 3,609.7 points.

The gains were broad-based, with eight of the 11 industry sectors closing in the black, led by the IT sector, which gained 1.89.

WiseTech Global rose 1.02 per cent to $122.42 per share, Xero gained 2.25 per cent to $153.68 and Technology One added 3.05 per cent to $25.37.

Financial stocks also rose sharply, up 1.61.

Commonwealth Bank rose 1.12% to $145.46, a new high; National Australia Bank rose 1.58% to $39.25; Westpac rose 1.07% to $32.26; ANZ rose 0.55% to $31.27.

Trump’s stock rally has been fueled by investor speculation that a Republican administration would introduce business-friendly policies, including tax cuts and spending increases.

“Trump’s plan would make the 2017 individual tax cuts permanent and slash the corporate tax rate for domestic manufacturers to 15,” said Tony Sycamore, market analyst at IG.

Market roundup: ASX200 rises after Trump's election

The ASX200 index rose on Wednesday as Donald Trump’s victory in the US presidential election became increasingly likely. Photo: AP/Evan Vucci

“This will lead to a ballooning deficit, which is already 6.

“The market’s reaction to these expectations is textbook.

“Meanwhile, the potential for crypto-friendly governments has pushed Bitcoin to a new all-time high of $75,080, up 7.15%, and momentum suggests a run to $80,000 is on the cards.”

Despite the gains in stocks, the Australian dollar fell 1.33% on looming U.S tariffs, a key part of Trump’s economic vision.

At the close, the Australian dollar was trading at 65.5 US cents.

Mr Sycamore added: “If voting trends continue in Trump’s favour during today’s Asian session, we would expect many of the above moves to continue in future trading.

“You know, if the Democrats regain ground, the market could still get one last shock from the U.S election.”

Market roundup: ASX200 rises after Trump's election

The benchmark ASX200 index rose 67.7 points on Wednesday. Photo: NewsWire / Max Mason-Hubers

ASX stocks that are dual-listed on US exchanges also performed well.

News Corp shares rose 4.04 per cent to $46.10, while Afterpay owner Block rose 4.09 per cent to $114.90.

The gains came after a frothy overnight rally on Wall Street on Tuesday, with the Dow Jones Industrial Average rising 427 points, or 1.02%, to 42,221, the S&P 500 gaining 1.23% to 5,782 and the tech-heavy Nasdaq rising 1.43% to 18,439.

The bourse’s heavyweight materials sector ended flat on the day, with large mining stocks giving up intraday gains in the afternoon.

BHP fell 3 cents to A$42.60, Rio Tinto fell 4 cents to A$119.38 and Fortescue fell 1.1 per cent to A$18.88.

In corporate news, property giant Goodman Group fell 0.22 per cent to $36.22 despite reporting an upbeat outlook for the 2025 financial year.

The company forecast a 9 percent rise in operating profit per share and said it had $12.8 billion worth of development work underway as of Sept. 30.

The biggest gainer on the ASX200 was Neuren Pharmaceuticals, which rose 8.15 per cent to $13.27.

The biggest decliner was lithium and nickel miner IGO Limited, which fell 5.6 per cent to $5.06.

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