The Australian stock market witnessed a significant rally during early trading as global markets digested the latest announcement from US President-elect Donald Trump.

Historic Closing for ASX 200

The benchmark ASX 200 index closed up by 0.28%, gaining 23.80 points to finish at 8417.60 points on Monday. This marked the first time the index crossed the 8400-point threshold, despite slipping 44 points from its intraday high during the final hour of trading.

Meanwhile, the All Ordinaries Index also rose, adding 28.10 points (0.33%) to end the day at 8661.20 points.

Australian Dollar Hits Two-Week High

The Australian dollar climbed 0.8% to a two-week high of US66.50c, as the US dollar weakened against major currencies globally.

Markets React to Key Appointment

Investor sentiment was boosted by the announcement of Scott Bessent, a seasoned hedge fund chief, as the nominee for US Treasury Secretary. The appointment was well-received across financial markets, with analysts citing Bessent’s market expertise and pragmatic approach to trade policies.

Tony Sycamore, a market analyst at IG, highlighted the significance of the decision:

“Trump got it right with the appointment of the Treasury Secretary, and that has positively influenced every asset class. Bessent’s market-savvy background and measured stance on tariffs have reassured investors.”

Bessent has previously described tariffs as a “negotiating tool” rather than a punitive measure, suggesting they should be implemented gradually to achieve strategic economic goals.

Global Market Impact

The positive reaction extended to US markets as well. S&P 500 futures rose 0.4%, while the 10-year US Treasury bond yield dropped by 6 basis points to 4.34% following the news of Bessent’s nomination.

The combination of strategic appointments and improving sentiment has set an optimistic tone for markets as the new administration prepares to take office.