Global Markets Report - 26 November

ASX set to open higher, after US stocks rose as investors greeted the appointment of Scott Bessent to lead the Treasury Department.

Morningstar

26 November 2024

Australia

Australian shares are set to open higher, after US stocks rose as investors greeted the appointment of Scott Bessent to lead the Treasury Department, amid hopes he could blunt some potentially inflationary policies.

ASX futures were up 0.21% or 18 points as of 9:00am on Tuesday, suggesting a higher open.

Donald Trump's pick of Scott Bessent for Treasury Secretary helped lift stocks and prompted a major rally in Treasurys, with investors betting that the long-time investor might reduce risks around tariffs and the budget deficit.

All three major indexes advanced, building on gains from last week.

Bessent, whom Trump chose on Friday after markets had closed, is widely viewed on Wall Street as a moderate figure who could temper Trump's more populist instincts on trade and fiscal policies.

The Dow Jones Industrial Average led gains, rising 1%. The S&P 500 and Nasdaq Composite both ticked up 0.3%.

In commodity markets, Brent crude oil was down 2.7% to US$73.17 a barrel, while gold was down 3.3% to US$2,625.69.

The Australian dollar was at 65.00 US cents, up from its previous close of 64.99.

Asia

Chinese shares closed mixed. The benchmark Shanghai Composite Index lost 0.1% to 3,263.76, and the Shenzhen Composite Index rose 0.4% to 1,974.89.

Hong Kong shares ended lower. The benchmark Hang Seng Index fell 0.4% to 19,150.99.

Japanese shares closed higher. The Nikkei Stock Average added 1.3% to 38,780.14.

India shares ended higher. The BSE SENSEX gained 1.3% to 80,109.85.

Europe

Stocks in the U.K. finished higher. The FTSE 100 Index increased 0.4% to 8,291.68.

In Europe, shares closed mixed. Germany's DAX rose 0.4% to 19,405.20, and France's CAC 40 was flat at 7,257.47.

North America

U.S. stocks ended higher. The DJIA added 1.0% to 44,736.57, the S&P 500 gained 0.3% to 5,987.37, and the Nasdaq increased 0.3% to 19,054.84.

Among S&P 500 companies, the top three gainers were Enphase Energy Inc, surging 8.49%, Ulta Beauty Inc jumped 7.13%, and DexCom Inc lifted 6.92%.

The biggest decliners were GE Vernova Inc which dropped 5.78%, ConocoPhillips fell 5.06%, and Vistra Corp lost 4.80%.

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AUTHOR

Morningstar
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