Safe haven: ASX outperforms Wall Street amid Trump chaos
The ASX hit record highs last week, for example, and the S&P 500 also fell more sharply during the global sell-off between late February and the April 'Liberation Day' turmoil. 'We've gone to a record high. They haven't,' he said.
Nick Twidale, Chief Market Analyst at ATFX Australia, said it had become clear Trump's tariffs were most damaging to the US economy and 'that's why we're seeing some other economies outstripping the US at the moment'.
'Having said that, we all know, especially from an Australian perspective, that a poor US economy is going to drag on us, as is a poor Chinese ... so how long that pattern stays for is up for question.'
Ten Cap founder and portfolio manager Jun Bei Liu said some big investors, like pension funds, were investing in the Australian market due to uncertainty in the US.
'A lot of global investors always hold US sharemarket as a big portion of their share portfolios ... sometimes 60, 70 per cent of their portfolios,' said Liu.
'Now with the tariffs, it really has structurally changed how those investors think about their investment portfolio, those large pension funds and the like. There is just way too much risk for them.'
'We are already seeing money going into Europe and Australia has been a huge beneficiary as well.'
Opal Capital chief investment officer Omkar Joshi said the differences in composition between the Australian sharemarket and Wall Street an important factor.
The technology sector comprises about 30 per cent of Wall Street, whereas the local bourse is dominated by banks and miners, who make up 50 per cent of the ASX 200 by value.
Loading
And Since China unveiled its DeepSeek technology late last year the AI trade – which has been significant to Wall Street – has begun to 'unwind' Joshi said. It's sent investors towards the safety of the ASX, particularly the banks.
'They're [blue-chip financial stocks] well insulated … from the tariff perspective,' said Joshi.
'When you're looking at it from an institutional [investor] perspective … the Australians banks start to look interesting … if there is earning certainty people are willing to pay up for it.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
23 minutes ago
- News.com.au
Top 10 at 11: ASX climbs as energy stocks rocket higher
Morning, and welcome to Stockhead's Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading. With the market opening at 10am sharp eastern time, the data is taken at 10.15am, once trading kicks off in earnest. In brief, this is what the market has been up to this morning. ASX climbs despite Wall Street pain The ASX is rising in early trade, up 0.21% as of about 10:30 am AEST despite full percentage point falls in US markets overnight. The energy sector is surging, up more than 6%, with strong support from the ASX 200 Resources sector, which is up 1.5%. Oil prices surged 7% on Friday and have continued to rise, providing momentum for oil and gas and utility stocks. Santos (ASX:STO) is up over 12% after revealing it received a non-indicative binding proposal from a consortium led by the Abu Dhabi National Oil Company, granting due diligence on a potential $30bn cash takeover. At $7.82, its shares are trading well below the $8.89 bid price, which represents a 28% premium to its last close of $6.96. But uranium companies are also surging. Deep Yellow (ASX:DYL), Paladin Energy (ASX:PDN), Boss Energy (ASX:BOW) and Bannerman Energy (ASX:BMN) have all hiked more than 10%. WINNERS Code Name Last % Change Volume Market Cap BIT Biotron Limited 0.003 50% 370000 $2,654,492 PRM Prominence Energy 0.005 25% 289900 $1,556,706 TEM Tempest Minerals 0.005 25% 200000 $3,511,212 ICE Icetana Limited 0.051 24% 243958 $21,804,862 ATX Amplia Therapeutics 0.069 21% 9024299 $22,113,302 AR9 Archtis Limited 0.075 21% 338479 $17,853,963 AZL Arizona Lithium Ltd 0.006 20% 1726225 $26,351,572 RC1 Redcastle Resources 0.006 20% 1426639 $3,717,835 PGO Pacgold 0.077 18% 524013 $9,940,387 AON Apollo Minerals Ltd 0.007 17% 12300 $5,570,741 In the news... Tempest Minerals (ASX:TEM) reckons it's sitting on an exceptional iron ore development at the Yalgoo project's Remorse deposit, after some recent metallurgical test work produced iron ore concentrate grading at 70% iron content. In a rare win for patients with advance pancreatic cancer, Amplia Therapeutic's (ASX:ATX) ACCENT trial has achieved a pathological complete response, meaning there were no signs of cancer in the patient's tissue after it was surgically removed. The company was investigating the use of its FAK inhibitor narmafotinib in combination with standard-of-care chemotherapies gemcitabine and Abraxane in patients with metastatic pancreatic cancer. A contract with the US Department of Defense has turned heads for archTIS (ASX:AR9), after the company locked in a deal to deploy its NC Protect secure software collaboration solution to an initial 1000 users. AR9 expects to expand to the full DoD network in the coming months, with potential to expand its user base 6-fold. The initial license sale carries a value of $38,500. Redcastle Resources (ASX:RC1) has inked a memorandum of understanding with a contract miner to manage mining works at the Queen Alexandra and Redcastle Reef projects on a profit-sharing basis. The agreement covers gold mineralisation down to 70m of depth, with Redcastle retaining rights to the mined gold and control of downstream transportation and processing. Pacgold (ASX:PGO) has hit more broad, shallow gold at the Alice River gold project, with RC drilling producing up to 48 metres at 2.1 g/t gold from 76 metres, and higher-grade intersections of 15m at 5g/t and 2m at 29 g/t gold. LAGGARDS Code Name Last % Change Volume Market Cap PRX Prodigy Gold NL 0.001 -50% 250000 $6,350,111 RAN Range International 0.001 -50% 450000 $1,878,581 RLC Reedy Lagoon Corp. 0.001 -50% 85604 $1,553,413 AUH Austchina Holdings 0.001 -33% 328 $4,538,075 FTC Fintech Chain Ltd 0.002 -33% 17241 $1,952,309 SFG Seafarms Group Ltd 0.001 -33% 75000 $7,254,899 GLE GLG Corp Ltd 0.1 -23% 59324 $9,633,000 CTN Catalina Resources 0.004 -20% 5108813 $12,130,095 ENT Enterprise Metals 0.002 -20% 143661 $2,953,293 EQX Equatorial Res Ltd 0.13 -19% 4000 $21,031,256 At Stockhead, we tell it like it is. While Redcastle Resources is a Stockhead advertiser, it did not sponsor this article.
The Age
35 minutes ago
- The Age
Before meeting Trump, Albanese meets the man who vowed to ‘stand up' to the President
Calgary: The AUKUS submarine pact, tariffs and China are expected to dominate the first face-to-face meeting between Anthony Albanese and Donald Trump, with the prime minister vowing to remind the US president of the significant military support Australia already provides. Fresh from a meeting with another world leader who benefited electorally from distancing himself from the president, Canadian Prime Minister Mark Carney, Albanese said he defined success with Trump as being able to argue Australia's case. 'I don't want to preempt outcomes of meetings [but] a successful meeting is one where we are able... to put forward our position,' Albanese said. On Monday, AEST, Carney and Albanese discussed deepening defence ties - including through the proposed Canadian acquisition of a sophisticated Australian-made radar system - as well as that country's participation in AUKUS' 'pillar 2' which is focused on advanced technology. Carney won his election earlier this year in a major upset in part by vowing to 'stand up' to Trump, who had suggested Canada could become a US state. The Australian prime minister will meet a bevy of leaders while attending the G7 summit on the edge of the Canadian Rocky mountains this week, including the prime ministers of England, Japan and Germany, the presidents of France, South Korea and France and EU leaders. The conflict between Israel and Iran will feature prominently at the summit, as will discussions on access to critical minerals, climate change, energy security and the global economy. But Albanese's first meeting with Trump at the summit – which will not issue its typical joint communique – has dominated the leadup to the event and comes at a time when there are an unusual number of sticking points in the usually smooth Australia-US relationship. 'Our position when it comes to tariffs is very clear,' he said. 'We see tariffs as acts of economic self harm by the country imposing the tariffs, because what it does is lead to increased costs for the country that is making those decisions,' he said.
The Age
35 minutes ago
- The Age
The PM just got a pay rise. Here's how his salary compares to Trump and other leaders
Prime Minister Anthony Albanese will be paid more than US President Donald Trump from next month after the Remuneration Tribunal boosted federal politicians' pay by 2.4 per cent. But how does his salary compare to that of other countries' leaders? While the US president's salary has been steady since 2001, the Remuneration Tribunal determines the change in salaries of Australian ministers – including the prime minister – every year. The latest decision, which takes effect on July 1, lifts Albanese's salary from $607,500 to $622,071. That means he will now overtake Trump, who is paid $US400,000 ($617,000). Albanese's latest pay rise is lower than the 3.5 per cent increase granted by the Fair Work Commission for minimum wage earners earlier this month, which the tribunal considered alongside economic conditions and past and projected movements in private and public sector pay. While Albanese is among the highest-paid government leaders in the world, he falls short of some heads of state in neighbouring countries. Singaporean Prime Minister Lawrence Wong, for example, is the highest-paid government leader, collecting $SG2.2 million ($2.5 million) last year. Singapore's ministerial salaries were raised in the 1980s because the country's first prime minister, Lee Kuan Yew, believed high salaries would reduce the temptation for corruption and attract the best people from the private sector to the public service. The leader, or chief executive, of Hong Kong also earns more than Albanese. Last year, the Hong Kong Free Press reported that John Lee would be paid about $HK5.6 million ($1.1 million). The Swiss president, who holds the position on a rotational one-year basis, received about 459,688 Swiss francs ($877,101) in 2024, placing the current leader, Karin Keller-Sutter, among the highest-paid in the world.
