ASX hits 11-week high after trade war truce; iron ore miners, tech stocks rally
Welcome to your five-minute recap of the trading day.
The numbers
The Australian sharemarket gained on Tuesday, following a rally on Wall Street after China and the United States announced a 90-day truce in their trade war and agreed to temporarily reduce tariffs on each other's goods.
The S&P/ASX 200 finished up 35.5 points, or 0.4 per cent, at 8269, the highest level since late February. Seven of the 11 industry sectors advanced, led by tech stocks, miners, retailers, and energy stocks, while more defensive sectors such as utilities and consumer staples declined.
The Australian dollar, which fell below US63.70¢ this morning, bounced back above US64¢ in the afternoon as the US dollar softened amid caution that the trade war has been paused, not resolved.
The lifters
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Australia's iron ore heavyweights advanced after prices for the metal jumped 3.2 per cent to $US100 a tonne overnight as the Trump administration dramatically slashed its crippling tariffs on imports from China for the duration of the truce, limiting the immediate damage on Australia's biggest export market. BHP shares climbed 2.1 per cent, as did Rio Tinto's, while Fortescue gained 2.7 per cent.
Tech stocks soared 3.4 per cent, tracking the rally on the US tech-focussed Nasdaq, with WiseTech Global (up 4.9 per cent) and accounting software maker Xero (up 1.7 per cent) going strong. Family member tracking app Life360 shot up 14 per cent, buoyed also by a trading update which showed its first-quarter sales surged 32 per cent from a year ago.
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