Weak retail sales boost rate cut hopes as ASX climbs on Friday
Australia's sharemarket rose for the second consecutive month in May, as traders dial up the chances of a rate cut in July following weaker than expected retail sales.
The benchmark ASX 200 index gained 24.90 points or 0.30 per cent on the final day of trading for May.
Australia's major index has closed up 3.8 per cent in May which is the best monthly gain since January.
Meanwhile the broader All Ordinaries also finished higher up 22.50 points or 0.26 per cent to finish the month at 8,660.30.
The Australian dollar slipped 0.28 per cent during Friday's trading and is now buying 64.26 US cents.
On an overall positive day for the market, seven of the 11 sectors finished in the green, led by consumer staples, utilities and financials.
The bounce in consumer staples was led by Treasury Wine Estates up 4.07 per cent to $8.44, while the A2Milk Company rose 3.35 per cent to $8.33.
The two major supermarkets also finished in the green, with Woolworths gaining 0.70 per cent to $31.85 while Coles eked out a gain of 0.28 per cent to $21.60.
All four of the major banks also finished higher during Friday's trading.
Westpac led the charge gaining 2.68 per cent to $32.56, NAB gained 1.33 per cent to $38.00, CBA jumped 0.87 per cent to $175.95 and ANZ finished higher up 0.41 per cent to $29.04.
The gains come despite other Asian markets slumping on the back of the White House winning an administrative stay on the blockage of most of its tariffs by the US Court of International Trade.
Capital.com senior financial market analyst Kyle Rodda said the US market gave back its gains after the tariff news was announced.
'The caution reflects the fact that although market sentiment has been supported by the prospect of the judiciary halting arguably Presidential overreach with tariffs and trade policy, the decision marks the beginning of a new source of uncertainty rather than the total closure of another,' he said.
Australia's sharemarket however was lifted on the back of weaker than expected retail sales.
While this is bad for some businesses, the money markets factored in a greater chance of a rate cut in July following the announcement that retail sales fell 0.1 per cent over the month of April compared with expectations of a 0.3 per cent rise.
AMP chief economist Shane Oliver said the results were surprising given Queensland was coming off a low base due to ex-Cyclone Alfred as well as most Aussies benefiting from a double Easter/Anzac Day long weekends.
'Tax and rate cuts will help but the consumer is still clearly struggling with real retail sales per person trending down so far this year after a mild rise into late last year,' he wrote in an economic note.
'The cost of living remains a problem – falling inflation is not the same thing as falling prices.'
In company news, Ramsay Health Care jumped 5.89 per cent to $38.30 on the back of reports in the Newcastle Herald claiming the Australian hospital operator won approval of its new building applications in NSW.
Shares in fintech Findi slumped 8.91 per cent $4.60 despite reporting a 54 per cent gain in underlying profits to $6m.
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The Advertiser
36 minutes ago
- The Advertiser
Softy, softly response to Trump's hard line on steel
Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency". Australia will not retaliate despite Donald Trump's "wrong" tariff hike decision on steel imports. Mr Trump plans to increase tariffs on foreign steel from 25 to 50 per cent to "further secure the steel industry in the United States". The move could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "This will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations," he told reporters on Saturday. Mr Farrell said the government would work with the US but reiterate the view that tariffs were "the wrong course of action" and "don't do what President Trump claims they will do". "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." Opposition trade spokesman Kevin Hogan said Mr Trump's call was concerning for Australian jobs. "The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers," he said. "This is why it is imperative that the Australian prime minister personally meets with President Trump ... to develop a personal rapport with the United States president and protect Australian industries." The industry's peak body says it will continue to work with the federal government to push for an exemption from the Trump administration. "The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel," Australian Steel Institute chief executive Mark Cain said. "And it could exacerbate the surge in imported low-priced steel that is damaging the industry." It took Australia nine months of lobbying before it secured a tariff exemption during Mr Trump's first administration. The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission. The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump's return to the White House in January and came into effect in March. The latest tariff hike comes after a US federal court blocked the president's Liberation Day taxes on imported goods from going into effect. Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump's latest announcement. The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs. The administration has launched an appeal, decrying "unelected judges" should not decide how to address a "national emergency".
The Advertiser
4 hours ago
- The Advertiser
EU threatens US with counter-tariffs in steel stand-off
The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs." The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs."
Perth Now
4 hours ago
- Perth Now
EU threatens US with counter-tariffs in steel stand-off
The European Union has spoken out against US President Donald Trump's latest tariff announcement on steel imports and has threatened countermeasures. "We strongly regret the announced increase of US tariffs on steel imports from 25 per cent to 50 per cent," said a spokesman for the European Commission in Brussels, which is responsible for EU trade policy. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic." The EU is ready to take countermeasures, the statement continued. This could also happen earlier than July 14. As things currently stand, EU counter-tariffs already planned due to Trump's initial tariff decisions would automatically come into force on this date. The bloc had wanted the measures to come into force on April 14, but held back after Trump granted many countries and the EU a 90-day pause from certain tariffs. This window of opportunity had been intended to be used for negotiations. The EU has repeatedly emphasised that it will introduce decisive measures against US tariffs if the talks fail. Early last week, European Union Commission President Ursula von der Leyen expressed some optimism about sorting out the trade dispute, following a phone call with Trump. But now it appears all bets could be off. Speaking at a rally at a US steel plant near Pittsburgh on Friday, the US president said the additional import fees would strengthen the national steel industry. He added that tariffs were his absolute favourite word. Trump's administration has justified the existing steel tariffs as a measure to protect national security. He has already announced, threatened or implemented numerous other tariffs. In addition to a new penalty tariff of 10 per cent of the value of goods on almost all imports, he has announced specific, higher tariffs on imports, including from major trading partners such as China and the European Union. Unlike the EU, Australia will not retaliate against Trump's "wrong" tariff hike decision on steel imports. Trade Minister Don Farrell is calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium. "We don't believe that retaliation is the right way to go here," he said. "We're going to cooly and calmly argue our case for the removal of these tariffs."
