ASX eyes the best return since COVID-19 as momentum trade kicks in
The Australian sharemarket has recorded its biggest return for the financial year since the COVID-19 pandemic, defying expectations for a sustained sell-off in a period marked by uncertainty over the Trump administration's tariff and economic plans and months of instability in the Middle East.
The S&P/ASX 200 Index has climbed 9.7 per cent for the 12 months through June and is expected to extend it gains by at least 0.1 per cent on Monday after a strong session on Wall Street that pushed the S&P 500 to a fresh record of 6,170 and Nvidia towards the $US4 trillion ($6.1 trillion) mark.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
30 minutes ago
- West Australian
WA economy: Chamber of Commerce and Industry survey shows stimulus-fuelled worker shortage remains
Almost one-in-five WA business leaders are heading to sleep at night worrying about Donald Trump's trade war and conflict in the Middle East, with their outlook on the economy getting gloomier. The number of bosses worried about tensions offshore has doubled since December, according to a fresh survey by lobby group the Chamber of Commerce and Industry of WA. Only one in four chiefs expect the economy will get better over the next 12 months, while 31 per cent think things will get worse — an increase of 7 percentage points. Months of uncertainty has led to growth downgrades across the world after America's President sparked shock in April with a major increase in trade taxes. Mr Trump soon back flipped and paused the scheme following financial instability. But the shadow of trade chaos looms large as the world hangs on a deadline of 9 July to negotiate deals. Western Australia's fortunes are unusually reliant on trade as about half of the State's economic activity is generated by exports. 'WA is a trading economy and the knock-on effect of the US tariffs and retaliatory tariffs have the potential to weigh on our economy,' CCIWA chief Aaron Morey said. 'Coupled with the Israel-Iran war, the impact on supply chains is a major concern for many businesses. 'Three in five (60 per cent) WA businesses (are) saying they expect their supply chains to be impacted by the tariffs.' The top worry for bosses remains the worker shortage, after a stimulus-fuelled inflation bubble coming out of the pandemic caused demand for staff to rocket. Almost two-in-three chiefs reckon skills shortages are a barrier to growth — with manufacturing, construction and resources hardest hit. Mr Morey seized on the survey to urge the State Government to cut payroll tax as a way to ease costs for companies and support job creation. There's still plenty of cause for optimism in WA. Unemployment remained below 4 per cent in May and the State's economy grew in the most recent quarter.
The Age
3 hours ago
- The Age
Australian exports to tumble $30b as Trump's tariff war hits home
Australia is headed for a $27 billion collapse in income from two of its biggest exports – liquefied gas and iron ore – as Donald Trump's trade war with China deepens fears for the global economy and stifles demand for commodities. The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the United States imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts. While Trump gave Australia the minimum baseline tariff rate of 10 per cent, the fallout for the country is expected to be wider-reaching as the biggest Asian buyers of Australia's natural resources, particularly China, face much higher US tariffs amid an already sluggish time for their economies. 'Rising trade barriers – and uncertainty over how high these barriers will settle – have disrupted trade between the US and its major partners and caused businesses and consumers to adopt a 'wait-and-see' approach,' the Department of Industry, Science and Resources says in its latest export forecast report, to be released on Monday. 'The associated uncertainty is likely to impinge on world commodity demand, as the nations that Australia supplies are impacted.' Australia is the world's largest exporter of iron ore – the raw ingredient that is turned into steel in giant blast furnaces – and one of the top shippers of liquefied natural gas to countries in Asia that need the fuel to keep the lights on and to power their factories. However, as prices continue easing, the revenue earned from those commodities is now projected to decline more sharply than the government had been expecting just three months ago: iron ore earnings are set to fall by $20 billion – from $116 billion to $96 billion – within two years, while LNG is on track to fall from $60 billion to $53 billion. 'The near-term outlook for Australian resources and energy exports has softened as rising trade barriers hurt the world economy,' the department says in the report.
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
Australian exports to tumble $30b as Trump's tariff war hits home
Australia is headed for a $27 billion collapse in income from two of its biggest exports – liquefied gas and iron ore – as Donald Trump's trade war with China deepens fears for the global economy and stifles demand for commodities. The outlook for some of Australia's largest mining and energy companies has deteriorated since April, when the United States imposed across-the-board tariffs at much higher rates than many had been expecting, leading to increased uncertainty and lower global growth forecasts. While Trump gave Australia the minimum baseline tariff rate of 10 per cent, the fallout for the country is expected to be wider-reaching as the biggest Asian buyers of Australia's natural resources, particularly China, face much higher US tariffs amid an already sluggish time for their economies. 'Rising trade barriers – and uncertainty over how high these barriers will settle – have disrupted trade between the US and its major partners and caused businesses and consumers to adopt a 'wait-and-see' approach,' the Department of Industry, Science and Resources says in its latest export forecast report, to be released on Monday. 'The associated uncertainty is likely to impinge on world commodity demand, as the nations that Australia supplies are impacted.' Australia is the world's largest exporter of iron ore – the raw ingredient that is turned into steel in giant blast furnaces – and one of the top shippers of liquefied natural gas to countries in Asia that need the fuel to keep the lights on and to power their factories. However, as prices continue easing, the revenue earned from those commodities is now projected to decline more sharply than the government had been expecting just three months ago: iron ore earnings are set to fall by $20 billion – from $116 billion to $96 billion – within two years, while LNG is on track to fall from $60 billion to $53 billion. 'The near-term outlook for Australian resources and energy exports has softened as rising trade barriers hurt the world economy,' the department says in the report.
