The numbers you see below are true. Global markets rallied overnight after Donald Trump's victory over Hillary Clinton for the U.S. presidency. Investors were supposedly boosted by the tone of his celebration speech.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fell as much as 3.9% on Wednesday as Trump's victory become increasingly likely, although it fought back to end the session 1.9% lower. Somewhat unbelievably, the Sydney Futures Exchange is pointing to a massive 158-point recovery today (I hope you remained calm yesterday).
Here's a quick recap:
- FTSE 100 (UK): up 1%
- DAX (Germany): up 1.56%
- CAC 40 (France): up 1.49%
- Dow Jones (USA): up 1.4%
- NASDAQ (USA): up 1.11%
The gold sector shone bright on Wednesday as investors around the world piled their wealth into the precious metal (which often rises on the back of fear).
Gold prices retreated heavily overnight to just US$1,274 an ounce, which could easily reverse some of the gains recorded by businesses such as EVOLUTION FPO (ASX: EVN), Northern Star Resources Ltd (ASX: NST) and Newcrest Mining Limited (ASX: NCM), which all rose between 9.8% and 11.4% yesterday.
Elsewhere, BHP Billiton Limited (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) could benefit after the iron ore price surged 3.9% to almost US$71 a tonne overnight, according to The Metal Bulletin.
Oil prices rose as well which could further help BHP, together with Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).
In reality, there are many other shares that could rise today if the market does rebound as strongly as the futures market is suggesting it will.
To highlight a few, Australia and New Zealand Banking Group (ASX: ANZ) fell more than 2% on Wednesday so could see a recovery of sorts today. The same could be said for Wesfarmers Ltd (ASX: WES) and Woolworths Limited (ASX: WOW) as well.
Healthcare shares also rose strongly in the United States overnight and, given that the sector as a whole dropped more than 2% in Australia yesterday, businesses such as Ramsay Health Care Limited (ASX: RHC) could benefit. Medibank Private Ltd (ASX: MPL) also fell sharply off the back of its annual general meeting, and could receive some attention today.
Elsewhere, Webjet Limited (ASX: WEB) took flight early yesterday after a positive update, but retreated heavily again amid the market's turbulence. The shares could regain some of that momentum today.
Finally, Wesfarmers will hold its AGM today. So too will BlueScope Steel Limited (ASX: BSL) and Treasury Wine Estates Ltd (ASX: TWE)
