ASX 200 rises 0.7 per cent, adding tens of billions to portfolios after Wall Street surges on historic US-China trade deal
The ASX 200 has soared as investors are buoyed by a major trade deal between the US and China which will greatly lower tariffs between the economic superpowers for 90-days.
The index has risen 0.7 on Tuesday, adding more than $20b to portfolios, with Breville Group jumping about eight per cent and Life360 up 12 per cent.
The massive surge follows Chinese and US officials reaching a deal to dramatically lower tariffs on each other for 90-days.
China had hit the US with 125 per cent levies on some goods, while the US slapped 145 per cent on Chinese imports following a tariff tit-for-tat.
The deal would see US and China charge 30 per cent and 10 per cent, respectively.
In a joint statement following the announcement, the representatives from both countries said they recognise the "importance of a sustainable, long-term and mutually beneficial economic and trade relationship and trade relationship".
"The parties will establish a mechanism to continue discussions about economic and trade relations," part of the statement read.
Wall Street soared off the news with the tech heavy Nasdaq rising 4.4 per cent on Monday, driven by Amazon's 8.1 per cent jump and Meta adding 7.9 per cent.
The S&P 500 soared 3.3 per cent as the Dow Jones increased 2.8 per cent.
European markets were not as impacted by the news with London's FSTE 250 adding 0.6 per cent, Germany's DAX rising 0.3 per cent and the EURO STOXX 50 up 1.6 per cent.
The NZX 50 Index has risen 0.9 per cent since the New Zealand's Exchange opened on Tuesday.
More to come.
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Perth Now
3 hours ago
- Perth Now
ASX slips on geopolitical tensions
The Australian sharemarket fell slightly during Friday's trading as fears of the fallout between Israel and Iran resulted in a broad sell-off on the market and investors rush to safe havens including gold. The benchmark ASX200 index closed down 17.70 points or 0.21 per cent to finish the week at 8,547.40. The broader All Ordinaries also traded lower falling 25.40 points or 0.29 per cent to 8,770.60. The Australian dollar slipped 0.85 per cent and is now buying 64.72 US cents. On a day dominated by geopolitical tensions, the market had a spike in volatility with strong gains in the energy, utilities and gold miners offset by falls in information technology, healthcare and consumer discretionary stocks. The ASX fell on Iran-Israel tensions. NewsWire / Jeremy Piper Credit: News Corp Australia Overall, just three of the 11 sectors gained during Friday's trading. One of the bright spots was the energy sector as the price of crude oil jumped to nearly $US75 a barrel on the back of political tensions between Israel and Iran which helped drive Australia's energy stocks higher. Israel has said the pre‑emptive attacks were aimed at eliminating Iran's nuclear program and ballistic missile capabilities, but the fears in the market are based on what Iran will do as a retaliation to these strikes. If it hits neighbouring oilfields or blocks the Strait of Hormuz, which controls 20 per cent of the world's oil consumption, the price of the commodity could skyrocket. Woodside Energy shares soared 7.4 per cent to $25.21, Santos traded higher gaining 3.73 per cent to $6.96 and Beach Energy gained 2.77 per cent to $1.30. There was also a flight to safety, with the price of gold jumping back to $US3,400 an ounce. This helped drive Northern Star up 5.1 per cent to $22.53 as well as Evolution Mining, which rose 5.5 per cent to $9.20. It was also a mixed day for the major banks. Commonwealth Bank slipped 0.65 per cent to $179.35, NAB fell 0.31 per cent to $38.87 and ANZ dropped 0.54 per cent to $29.63. Westpac was the outlier eking out a tiny gain of 0.03 per cent to $33.36. Just three of the 11 sectors gained during Friday's trading. NewsWire / Max Mason-Hubers Credit: News Corp Australia Despite the strong moves on the market, AMP chief economist Shane Oliver urged a sense of caution. 'Just bear in mind that tensions regularly flare up in the Middle East, escalate for a while and then settle back down again so there is a danger in getting too negative on it and the key for investors is to look for the opportunities that the latest conflict may throw up,' he wrote in an economic note. Even with the falls, Dr Oliver said the Australia market still finished in the green. 'Despite falling on Friday after Israel's attack, Australian shares bucked the global trend and are on track for a gain of around 0.3 per cent for the week after having hit a record high midweek with the gains led by energy, utility property and consumer stocks,' he said. In corporate news, shares in Cettire continued its falls, dropping another 20.3 per cent to $0.26 a share, after slumping 31 per cent during Thursday's trading. The fall in the online luxury retailer comes after it issued a second profit downgrade in the last few months. Accent group also had a day to forget, with shares dropping 21 per cent to a year low of $1.43 after annoying a disappointing post Christmas trading period. The Platypus and HypeDC owner said sales for the 23 weeks until June 8 are down 1 per cent and is now expecting an EBIT of between $108m to $11m for the financial year.
News.com.au
3 hours ago
- News.com.au
ASX slides as Iran-Israel tensions send oil prices higher
The Australian sharemarket fell slightly during Friday's trading as fears of the fallout between Israel and Iran resulted in a broad sell-off on the market and investors rush to safe havens including gold. The benchmark ASX200 index closed down 17.70 points or 0.21 per cent to finish the week at 8,547.40. The broader All Ordinaries also traded lower falling 25.40 points or 0.29 per cent to 8,770.60. The Australian dollar slipped 0.85 per cent and is now buying 64.72 US cents. On a day dominated by geopolitical tensions, the market had a spike in volatility with strong gains in the energy, utilities and gold miners offset by falls in information technology, healthcare and consumer discretionary stocks. Overall, just three of the 11 sectors gained during Friday's trading. One of the bright spots was the energy sector as the price of crude oil jumped to nearly $US75 a barrel on the back of political tensions between Israel and Iran which helped drive Australia's energy stocks higher. Israel has said the preâ€'emptive attacks were aimed at eliminating Iran's nuclear program and ballistic missile capabilities, but the fears in the market are based on what Iran will do as a retaliation to these strikes. If it hits neighbouring oilfields or blocks the Strait of Hormuz, which controls 20 per cent of the world's oil consumption, the price of the commodity could skyrocket. Woodside Energy shares soared 7.4 per cent to $25.21, Santos traded higher gaining 3.73 per cent to $6.96 and Beach Energy gained 2.77 per cent to $1.30. There was also a flight to safety, with the price of gold jumping back to $US3,400 an ounce. This helped drive Northern Star up 5.1 per cent to $22.53 as well as Evolution Mining, which rose 5.5 per cent to $9.20. It was also a mixed day for the major banks. Commonwealth Bank slipped 0.65 per cent to $179.35, NAB fell 0.31 per cent to $38.87 and ANZ dropped 0.54 per cent to $29.63. Westpac was the outlier eking out a tiny gain of 0.03 per cent to $33.36. Despite the strong moves on the market, AMP chief economist Shane Oliver urged a sense of caution. 'Just bear in mind that tensions regularly flare up in the Middle East, escalate for a while and then settle back down again so there is a danger in getting too negative on it and the key for investors is to look for the opportunities that the latest conflict may throw up,' he wrote in an economic note. Even with the falls, Dr Oliver said the Australia market still finished in the green. 'Despite falling on Friday after Israel's attack, Australian shares bucked the global trend and are on track for a gain of around 0.3 per cent for the week after having hit a record high midweek with the gains led by energy, utility property and consumer stocks,' he said. In corporate news, shares in Cettire continued its falls, dropping another 20.3 per cent to $0.26 a share, after slumping 31 per cent during Thursday's trading. The fall in the online luxury retailer comes after it issued a second profit downgrade in the last few months. Accent group also had a day to forget, with shares dropping 21 per cent to a year low of $1.43 after annoying a disappointing post Christmas trading period. The Platypus and HypeDC owner said sales for the 23 weeks until June 8 are down 1 per cent and is now expecting an EBIT of between $108m to $11m for the financial year.
The Advertiser
4 hours ago
- The Advertiser
New Middle East conflict sends jitters through market
Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents
