Australian shares managed a modest gain after a choppy session as a rebound in miners and technology helped offset pressure on banks and property stocks, with the market still navigating the fallout from last week’s sharp AI-led sell-off on Wall Street. ANZ was the major drag after a softer full-year result which triggered selling across the Big Four, while gold and copper strength supported a recovery across parts of the resources sector.
The storming victory by the Democrats in the US, taking both the House and Senate, was largely expected, although the emphatic nature of the result surprised many. It led to investors reassessing the risks around the AI infrastructure buildout - the “picks and shovels trade” was literally hammered.
The RBA and US midterms drove a volatile week for the ASX 200, which ultimately finished up a solid 1.3%. Not a bad result, given the uncertainty sweeping through some sectors after the ‘blue wave’ of discontent washed through the US. Except for the energy sector, most pockets of the ASX contributed to the market’s close back above the psychological 9000 level, with a 10% gain by the software names, the standout.
Aussie shares finished lower as Wall Street’s AI sell-off spilled into global markets, with miners and technology stocks bearing the brunt of fears around tighter data centre regulation and a potential slowdown in infrastructure spending.
A huge day for Aussie equities, with the ASX bouncing strongly following the US mid-term elections, a pullback in oil and lower bond yields. Technology led the charge, surging around 10%, while Materials ripped 7.5% higher - 8 of the 11 sectors finishing in the green. Energy and Financials were the notable laggards. Energy weakness was understandable as oil prices cooled, while NAB’s soft FY26 result was enough to put the kibosh on the banks, making the broader market move even more impressive.
The ASX 200 followed the US futures aggressively lower on Wednesday as it became clear that President Trump and the Republicans had lost control of both the Senate and House; the bookies got it correct.
Local shares moved lower through the day as US midterm results trickled in, with the Democrats taking control of the senate and triggering fears of tighter regulation across the AI and data centre industries, sending US futures lower and weighing on technology-linked miners.
Yesterday brought us the Melbourne Cup and another 0.25% rate hike by the RBA, taking the cash rate to 4.85%, its highest level in 18 years. The hike was totally expected, but overall the rhetoric from Michele Bullock supported our view that rates will now be on hold well into 2027, with the next move more likely to be a cut.
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