The MAGA market
Trump's election win sent US equities soaring, but Australian investors seem much less certain that his return will be great for them.
Donald Trump’s victory in the US election was clear and decisive, but investors on this side of the Pacific are still digesting the implications for local investment markets.
While US equities rallied hard in the aftermath of the result, with the Dow Jones gaining 3.57% in its best trading session in about two years as it vaulted to a fresh record high, the response on the ASX was far more muted.
The local bourse traded sideways all day to close just 0.33% higher. Local market participants seem far from certain that four more years of making America great again will necessarily be great for one of its closest allies, Australia — or at least the ASX.
While US investors got the certainty they craved with a decisive result, ASX investors still face many questions about what the return of Trump means for the market. Among them are whether the current Labor government can, like its Coalition predecessor, deftly manage Trump and avoid tariffs on Australian exports, and what influence Trump may have over US monetary policy.
