ASX recoups almost all 2020 losses after historic Wall Street rally

The ASX has erased almost all of the losses suffered this year after a historic rally on US markets, driven by vaccine hopes and Donald Trump’s capitulation.

The Australian sharemarket has recouped almost all of the losses suffered this calendar year after Wall Street’s blue-chip index reached historic heights.

The local benchmark S&P/ASX200 index broke through 6700 points early in the session before settling back to finish 0.5 per cent stronger at 6683. This was just shy of the close of 6690.6 on January 2, the first trading day of 2020.

The All Ordinaries Index firmed 0.4 per cent to 6888.

On the US market, the Dow Jones index broke through 30,000 points for the first time ever, underpinned by the trio of successful vaccine trials announced in recent weeks.

Market sentiment was also boosted by outgoing President Donald Trump’s decision to co-operate with a transition of power to President-elect Joe Biden.

Donald Trump still believes his legal fights against the election outcome ‘will prevail’, however. Picture: Mandel Ngan/AFP

The oil price hit its highest level since March, signalling the world might return to normal faster than expected, Axi chief global market strategist Stephen Innes said.

The S&P 500 index in the US also hit record highs.

Locally, the market had staged “quite a recovery” since late February, CommSec analyst James Tao said, with November on track to be one of the best months in 32 years.

Among energy stocks, Woodside rose 2.96 per cent to $23.31, Santos gained 2.67 per cent to $6.53, Origin put on 3.96 per cent to $5.25 and Whitehaven Coal jumped 10.7 per cent to $1.55.

ANZ lifted 3 per cent to $23.66, Commonwealth Bank appreciated 1.49 per cent to $82.37, National Australia Bank strengthened 3.09 per cent to $24.05 and Westpac advanced 2.15 per cent to $20.89.

Retailer Harvey Norman revealed a year-to-date sales surge of more than 28 per cent but its shares backtracked 2.55 per cent to $4.58.

Harvey Norman’s 81-year-old co-founder Gerry Harvey told the retailer’s AGM he would not retire any time soon and his doctor thinks he will live to 100.

Clothing retailer Kathmandu released a trading update that was in line with expectations, saying its recently acquired surfwear brand Rip Curl had performed strongly.

But the group warned its first-half result would be dependent on the all-important Christmas period and its shares fell 4.18 per cent to $1.26.

Rio Tinto added 1.12 per cent to $104.28, BHP lifted 3.03 per cent to $39.46 and Fortescue was up 2.82 per cent at $18.60.

Gold stocks — the usual retreat for investors in tough economic times — retreated again after being among the worst performers on Tuesday.

“That’s no real surprise in these particular times,” Mr Tao said.

Australia’s biggest producer of the precious metal, Newcrest, eased 0.64 per cent to $26.43, Saracen Minerals dropped 1.27 per cent to $4.68 and Northern Star gave up 1.57 per cent to $12.52.

The Aussie dollar was fetching 73.46 US cents, 54.96 British pence and 61.69 Euro cents in afternoon trade.

Originally published as ASX recoups almost all 2020 losses after historic Wall Street rally