ASX set to rise as Wall Street moves higher; $A slips
US stocks are gaining ground and financial markets worldwide are holding relatively steady as the wait continues for more updates on President Donald Trump's tariffs and how much they're affecting the economy.
The S&P 500 was 0.5 per cent higher in afternoon trading, coming off a modest gain that added to its stellar May. It's back within 3 per cent of its all-time high set earlier this year after falling roughly 20 per cent below two months ago.
The Dow Jones was up 207 points, or 0.5 per cent, and the Nasdaq composite was 0.8 per cent higher. The Australian sharemarket is set to rise, with futures at 4.53am AEST pointing to a gain of 29 points, or 0.3 per cent, at the open. The ASX added 0.6 per cent to close at an 11-week high on Tuesday.
The Australian dollar retreated. It was 0.4 per cent weaker at 64.68 US cents at 5.06am AEST.
On Wall Street, Dollar General jumped 15.2 per cent for one of the market's bigger gains after reporting stronger profit and revenue for the start of the year than analysts expected. The discount retailer also raised its forecasts for profit and revenue over the full year, though it cautioned that 'uncertainty exists for the remainder of the year' because of tariffs and how they might affect its customers.
Many other companies have cut or withdrawn their financial forecasts for the upcoming year because of the uncertainty caused by Trump's on-again-off-again rollout of tariffs. The Organisation for Economic Cooperation and Development said on Tuesday that it's forecasting 1.6 per cent growth for the US economy this year, down from 2.8 per cent last year.
Loading
But while Trump's tariffs have certainly made US households feel more pessimistic about where the economy and inflation are heading, reports have suggested only a moderate hit so far. Manufacturers have begun to feel the effects, but the overall job market has remained solid overall with layoffs remaining relatively low, and inflation has not taken off.
A report on Tuesday morning showed US employers were advertising more job openings at the end of April than economists expected, another signal that the labour market remains solid. It sets the stage for a more important report coming on Friday, which will show how much hiring and firing US employers did in May.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
29 minutes ago
- AU Financial Review
Trump and Xi speak on phone with tensions edging up
Chinese President Xi Jinping spoke by phone with US President Donald Trump on Thursday, Chinese state media reported, as tensions between the two countries over trade resurfaced. The call came in the wake of renewed accusations between Washington and Beijing over violations of a trade deal struck weeks earlier in Geneva. The agreement, aimed at easing tensions, included a 90-day mutual tariff reduction that Trump described as a 'total reset.'
Perth Now
31 minutes ago
- Perth Now
Xi and Trump have spoken by phone: Chinese reports
Chinese President Xi Jinping has held talks with US President Donald Trump by phone, China's state-run news agency Xinhua reports, as bilateral relations have been strained by trade disputes. The phone talks were at Trump's request, Xinhua said, without providing further details about the leaders' conversation. The White House did not immediately respond to a request for comment. The highly anticipated call comes amid accusations between the United States and China in recent weeks over critical minerals in a dispute that threatens to tear up a fragile truce in the trade conflict between the governments of the two biggest economies. The countries struck a 90-day deal on May 12 to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. We call on the U.S. to uphold the market principle of fair competition, stop politicizing trade issues, and provide a fair, just and non-discriminatory environment for Chinese and other foreign will do what is necessary to defend Chinese businesses' legitimate… CHINA MFA Spokesperson 中国外交部发言人 (@MFA_China) June 5, 2025 Although stocks rallied, the temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives, who say the uncertainty has made it difficult to forecast market conditions. China's decision in April to suspend exports of a wide range of critical minerals and magnets continues to disrupt supplies needed by car makers, computer chip manufacturers and military contractors around the world. China's government sees mineral exports as a source of leverage - halting those exports could put domestic political pressure on the Republican US president if economic growth sags because companies cannot produce mineral-powered products. The 90-day deal to roll back tariffs and trade restrictions is tenuous. Trump has accused China of violating the agreement and has ordered curbs on chip design software and other shipments to the country. China rejected the claim and threatened counter-measures. Trump has long pushed for a call or a meeting with Xi but China has rejected that as not in keeping with its traditional approach of working out agreement details before the leaders talk. Trump had declared one day earlier that it was difficult to reach a deal with Xi. "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" Trump posted on Wednesday on his social media site. The US president and his aides see leader-to-leader talks as vital to sort through log-jams that have vexed lower-level officials in difficult negotiations. with AP
West Australian
37 minutes ago
- West Australian
Xi and Trump have spoken by phone: Chinese reports
Chinese President Xi Jinping has held talks with US President Donald Trump by phone, China's state-run news agency Xinhua reports, as bilateral relations have been strained by trade disputes. The phone talks were at Trump's request, Xinhua said, without providing further details about the leaders' conversation. The White House did not immediately respond to a request for comment. The highly anticipated call comes amid accusations between the United States and China in recent weeks over critical minerals in a dispute that threatens to tear up a fragile truce in the trade conflict between the governments of the two biggest economies. The countries struck a 90-day deal on May 12 to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. Although stocks rallied, the temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives, who say the uncertainty has made it difficult to forecast market conditions. China's decision in April to suspend exports of a wide range of critical minerals and magnets continues to disrupt supplies needed by car makers, computer chip manufacturers and military contractors around the world. China's government sees mineral exports as a source of leverage - halting those exports could put domestic political pressure on the Republican US president if economic growth sags because companies cannot produce mineral-powered products. The 90-day deal to roll back tariffs and trade restrictions is tenuous. Trump has accused China of violating the agreement and has ordered curbs on chip design software and other shipments to the country. China rejected the claim and threatened counter-measures. Trump has long pushed for a call or a meeting with Xi but China has rejected that as not in keeping with its traditional approach of working out agreement details before the leaders talk. Trump had declared one day earlier that it was difficult to reach a deal with Xi. "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" Trump posted on Wednesday on his social media site. The US president and his aides see leader-to-leader talks as vital to sort through log-jams that have vexed lower-level officials in difficult negotiations. with AP
