Three Aussie energy giants to watch

Will incoming US President Donald Trump pull the US out of the Paris Agreement again? And what could that mean for Australia, especially for local companies?

With Trump's history, it's safe to assume he'll likely exit the agreement once more, doubling down on fossil fuels.

While the US stands to benefit from cheaper energy, countries committed to the Paris Agreement could be left footing the bill for cleaner alternatives-a tough pill to swallow in today's economic climate.

Yet, this shift could play to Australia's strengths and open massive opportunities in the materials sector, creating a potential windfall for investors interested in traditional energy sources.

With Trump's policies focused on boosting US energy independence through oil, gas, and coal production, American energy exports could shrink, leaving room for Australia to step in and fill global demand.

Additionally, if the US reduces restrictions on fossil fuels, other countries might follow suit, easing the regulatory burden worldwide and giving Australian producers an edge in a more favourable global market.

So which companies might see gains?

Three Australian energy players worth watching

Whitehaven Coal (ASX: WHC)

With Trump pushing for more fossil fuel use, demand for thermal coal could rise, giving Whitehaven a boost.

After a staggering 1230% rally from its 2020 lows, the stock has found support around $6.

If this level holds, there's potential for a rally back up to $8.40. A breakout above this level could signal a longer-term uptrend if coal demand surges.

Santos (ASX: STO)

As one of Australia's leading natural gas producers, Santos could benefit if the US turns its focus to LNG exports and natural gas as a transition fuel.

The share price has been stuck in a narrow range of around $6.50 for nearly four years, but shifting energy policies might be the catalyst it needs to break out.

If it rebounds toward $8 and breaks through, a sustained growth trend could follow.

Woodside Petroleum (ASX: WDS)

Woodside's exposure to the US market positions it to benefit if Trump's policies drive up American energy demand.

The company's recent strategic pivot toward the US aligns well with a renewed focus on traditional fossil fuels.

Following a sharp 40% decline in its share price from the November 2022 peak, Woodside is now trading around the $23 level-a crucial support zone that previously led to a major rally back in 2016. Watch this one closely for a potential rebound as a turnaround could be on the horizon.

So, while these companies are a must-watch right now, the big question is: will Australia seize this opportunity or stick to its green path? The energy landscape is shifting, and there's a chance to make the most of it.

What are the best and worst-performing sectors this week?

The best-performing sectors include Information Technology, up 4%, followed by Industrials, up more than 3% and Financials, up more than 2%.

The worst-performing sectors include Real Estate, down more than 2%, followed by Materials and Consumer Staples, both down under half a per cent.

The best-performing stocks in the ASX top 100 include Bluescope Steel and Computershare, both up more than 11%, followed by Worley Limited, up more than 9%.

The worst-performing stocks include A2 Milk, down more than 9%, followed by Evolution Mining and Northern Star, which are both down more than 6%.

What's next for the Australian stock market?

Sellers have taken control this week, pushing the All Ordinaries Index down by more than 1%.

Interestingly, the index is beginning to show signs of repeating a pattern seen from April to July this year, where buyers and sellers were locked in a tug-of-war, resulting in a sideways market.

Since September 20, weekly opening and closing prices have kept the All Ords within a narrow range of 8323 to 8551 points.

However, with prices dipping this week, key support at 8300 points is expected to hold, likely

prompting an upside reversal next week. If the market closes below 8323, we could see further

downside in the weeks ahead, with additional support around 8100 points.

For the near term, it's likely the index will remain range-bound, possibly breaking above 8600 points if a Santa Rally builds momentum in December.

The technology sector continues to lead, fuelled by gains in AI, semiconductors, and software stocks, buoyed by renewed optimism following Trump's recent election victory. Yet, tech alone hasn't been enough to lift the broader market this week.

However, if you think the year's opportunities are behind us, think again.

With the Index producing a long-term yearly average of 13% since 1900 and the All Ords currently up around 8%, the market is still primed for one last push to close out the year on a high note.

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