ASX: Share market lifts on US-China peace talks but gold stocks sink
A ceasefire in America's trade war with China has sparked an enthusiastic Tuesday morning for share markets.
The ASX200 lifted 0.75 per cent in the first few minutes of trade but the ebullience was soon pared back, and the bourse was up 0.38 per cent at 8,264.7 points an hour from the close.
Japan's Nikkei Index was up 1.8 per cent while the Dow gained 2.8 per cent overnight.
It followed news of a peace deal between the world's two largest economies on Monday, with tariffs slashed for 90-days while trade talks continue. But economists have cautioned that tariffs remain much higher than when the year started.
US-exposed Clarity Pharmaceuticals was the top performer, rising 15 per cent to $2.56 per share. Clarity won a fast-track designation from America's Food and Drug Administration in February for a prostate cancer treatment.
That came despite overseas drug-makers sliding thanks to news President Donald Trump planned an executive order to slash pharmaceutical prices.
Life360 — a tech app hoping to grow in North America — was up 11.9 per cent to $26.69.
But WA's darling gold industry copped a hit as investors downgraded their expectations of economic and financial risk. The Aussie dollar gold price dove $180 an ounce in the past week to be below $5100/oz.
The five worst performing stocks on Tuesday were all gold plays. Capricorn Metals, Ramelius Resources, Genesis Minerals, Spartan Resources and Regis Resources all posted falls of almost 10 per cent or more.
Commonwealth Bank economists declared they believe 'peak tariff' is past — with the US to cut trade taxes on Chinese goods by 115 percentage points.
'The 90 day deal gives the US and Chinese governments time to rethink their positions,' head of international and sustainable economics Joseph Capurso said in a note.
'Their earlier positions were going to have a material negative impact on their economies.'
He said the deal reduced economic risk but tariffs could still lead to stagflation — when both unemployment and inflation remain elevated.
'We consider there is little chance the US and Chinese governments will agree to a comprehensive trade agreement in the next 90 days,' Mr Caruso said.
'The shortlived first trade agreement in President Trump' first term took around one year to negotiate.
'At the end of the 90 days, we expect tariffs on imports from China and the US will still be material, probably not much lower than currently.'
ANZ reckoned the US Federal Reserve would resume interest rate cuts in the September quarter. But the big four bank still put the chances of an American recession at 30 per cent.
The ceasefire deal is the latest major backdown by Mr Trump's administration, after sweeping and largely baseless tariffs announced on so-called 'Liberation Day' in April.
The huge tax hike — among the largest in US history — sparked panic in financial markets and sent the cost of US government debt soaring.
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West Australian
an hour ago
- West Australian
ASX slumps during Monday's trading on Steel and aluminium tariffs
Australian stocks fell slightly on Monday, following a negative lead in from Wall Street on the back of US President Donald Trump doubling tariffs on steel and aluminium. The benchmark ASX 200 index slid 20.60 points or 0.24 per cent to 8,414.10. The broader All Ordinaries also fell, down 22.80 or 0.26 per cent to 8,637.50. The Australian dollar finished in the green and is now buying 64.68 US cents. On an overall negative day for the market, eight of the 11 sectors dragged the index lower, with telecommunications, industrials and consumer staples being the rare bright spots. All three major iron ore miners slipped, with BHP falling 1.23 per cent to $37.78, Rio Tinto slumping 1.70 per cent to $110.75 and Fortescue Metals retreating 2.53 per cent to $15. It was a mixed day for the big four banks, with CBA rose 0.27 per cent to $176.42 to be the only major bank to trade higher. Shares in Westpac slumped 1.17 per cent to $32.18, while NAB is down 0.68 per cent to $37.74 and ANZ finished in the red down 0.21 per cent to $28.98. Despite the price of crude oil rising, petroleum companies Ampol fell 0.74 per cent to $25.34, Woodside slid 1.12 per cent to $22, and Santos slumped 1.52 per cent to $6.49. During Monday's trading, US futures dived after US President Donald Trump said he would double the tariffs placed on steel and aluminium from Wednesday. IG market analyst Tony Sycamore said the Australian market has performed 'reasonably well' despite a number of negative headlines impacting the ASX 200 including the latest tariff move by President Trump. 'We had a 25 to 50 per cent tariff added to steel and aluminium exports, which obviously was a hit to sentiment,' he said. Mr Sycamore also pointed to President Trump's 'big beautiful bill', which would extend Trump's tax cuts from 2017 at the same time as lifting the debt ceiling, and increasing spending on border security and the military. 'We need to be mindful that revenues need to be raised given the fact Trump's bill is before the senate and he is going to want to pass that, so he will need to show revenue gains and that can only be done through the different avenues to raise tariffs,' he said. He also pointed to military moves both in the Middle East and Ukraine-Russia conflict adding to global uncertainty. In company news, shares in Brickworks and Washington H Soul Patts were the two biggest winners on the ASX. Shares in Soul Patts leapt 16.44 per cent to $43 while Brickworks soared 27.59 per cent to $35.10 after the two businesses announced a $14bn merger. BlueScope Steel also jumped 4.4 per cent to $23.75 on the back of Trump's tariff decision, with the market seeing it as a major winner as it makes half its money from operations within the US.
News.com.au
an hour ago
- News.com.au
Closing Bell: ASX slips as falling oil prices undercut energy and utilities stocks
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Still, the uptick offered one of the few bright spots for the ASX, lifting the All Ords Gold Index 0.85%. China signals it's considering 'forceful measures' As Stockhead's Eddy Sunarto wrote this morning, Trump has re-ignited tensions over US-China trade relations, accusing Beijing of failing to hold up its end of the deal in a post on Truth Social. While he signalled a desire to resolve the trade spat via a conversation with China's President Xi Jinping, Chinese officials are already voicing their displeasure. "China, with a responsible attitude, has earnestly addressed, strictly implemented, and actively upheld the consensus of the trade talks in Geneva," a Chinese Ministry of Commerce official stated. The official has accused the US of introducing 'multiple discriminatory restrictions against China' pointing to controls on AI chip exports, restrictions on sales of chip design software, and the revocation of visas for Chinese students. 'The US has continuously provoked new trade frictions, exacerbating uncertainty and instability in bilateral trade relations,' the official statement read. "China firmly rejects these unwarranted accusations." US car makers are deeply concerned about losing access to rare earth magnets, as China currently dominates the market, controlling about 90% of rare earth processing globally. Uncertainty is running rampant as traders wait to see how far China and Trump will take this new stoush. Section 899 'revenge' tax draws ire Already widely criticised for drastically increasing government deficits and reducing the US judicial system's ability to enforce orders on the government, Trump's new tax bill also contains a 'revenge' tax measure that has alarmed international traders. While the full scope of the proposed changes and their application is unclear, the bill would give the administration powers to impose a tax of up to 20% on foreigners with US-based investments. It's designed to be used in cases where the administration believes other countries are imposing unfair or discriminatory taxes against US companies, thus the 'revenge tax' moniker. 'We see this legislation as creating the scope for the US administration to transform a trade war into a capital war,' Deutsche Bank analyst George Saravelos said. If the bill passes, the provision could make foreign investors think twice about parking their money in US assets. Considering trust in US government bonds is shaky at present, the bill could contribute to a marked pull-back of foreign investment in the country. 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Perth Now
an hour ago
- Perth Now
ASX slips after last tariff update
Australian stocks fell slightly on Monday, following a negative lead in from Wall Street on the back of US President Donald Trump doubling tariffs on steel and aluminium. The benchmark ASX 200 index slid 20.60 points or 0.24 per cent to 8,414.10. The broader All Ordinaries also fell, down 22.80 or 0.26 per cent to 8,637.50. The Australian dollar finished in the green and is now buying 64.68 US cents. On an overall negative day for the market, eight of the 11 sectors dragged the index lower, with telecommunications, industrials and consumer staples being the rare bright spots. Eight of the 11 sectors fell during Monday's trading. Picture Newswire/ Gaye Gerard. Credit: News Corp Australia All three major iron ore miners slipped, with BHP falling 1.23 per cent to $37.78, Rio Tinto slumping 1.70 per cent to $110.75 and Fortescue Metals retreating 2.53 per cent to $15. It was a mixed day for the big four banks, with CBA rose 0.27 per cent to $176.42 to be the only major bank to trade higher. Shares in Westpac slumped 1.17 per cent to $32.18, while NAB is down 0.68 per cent to $37.74 and ANZ finished in the red down 0.21 per cent to $28.98. Despite the price of crude oil rising, petroleum companies Ampol fell 0.74 per cent to $25.34, Woodside slid 1.12 per cent to $22, and Santos slumped 1.52 per cent to $6.49. During Monday's trading, US futures dived after US President Donald Trump said he would double the tariffs placed on steel and aluminium from Wednesday. IG market analyst Tony Sycamore said the Australian market has performed 'reasonably well' despite a number of negative headlines impacting the ASX 200 including the latest tariff move by President Trump. 'We had a 25 to 50 per cent tariff added to steel and aluminium exports, which obviously was a hit to sentiment,' he said. ASX falls on additional steel and aluminium tariffs. NewsWire / Max Mason-Hubers Credit: News Corp Australia Mr Sycamore also pointed to President Trump's 'big beautiful bill', which would extend Trump's tax cuts from 2017 at the same time as lifting the debt ceiling, and increasing spending on border security and the military. 'We need to be mindful that revenues need to be raised given the fact Trump's bill is before the senate and he is going to want to pass that, so he will need to show revenue gains and that can only be done through the different avenues to raise tariffs,' he said. He also pointed to military moves both in the Middle East and Ukraine-Russia conflict adding to global uncertainty. In company news, shares in Brickworks and Washington H Soul Patts were the two biggest winners on the ASX. Shares in Soul Patts leapt 16.44 per cent to $43 while Brickworks soared 27.59 per cent to $35.10 after the two businesses announced a $14bn merger. BlueScope Steel also jumped 4.4 per cent to $23.75 on the back of Trump's tariff decision, with the market seeing it as a major winner as it makes half its money from operations within the US.
