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Highlights
- ASX Rises Amid Trump’s Trade Policy Review
- Commodities Gain as US Dollar Weakens
- Liontown Resources (ASX:LTR) Reports Major Revenue Surge
The Australian Securities Exchange (ASX) opened higher today, fueled by reports that US President Donald Trump is reconsidering his stance on tariffs. By 10:30 AM AEDT, the S&P/ASX 200 index surged 50.6 points, or 0.61%, to 8,398, signaling market optimism. Over the past five days, the index has gained 2.03% and remains just 1.37% below its 52-week high.
Nine out of 11 sectors posted early gains, led by the materials sector with a 0.44% increase. This sector’s performance over the week reflects a 2% uptick, signaling consistent growth. Utilities advanced by 0.17%, while industrials and energy edged up marginally by 0.07% and 0.02%, respectively.
Economists attribute this positive shift to recent unconfirmed reports that tariffs may not be included in day-one executive orders under President Trump. Instead, Trump is reportedly prioritizing a comprehensive review of trade policies.
ANZ Senior Economist Adelaide Timbrell highlighted that the weaker US dollar, driven by these developments, had eased concerns in commodity markets. This coincided with data showing China's industrial production and manufacturing activities benefiting from recent stimulus measures. Improved export-driven demand has also played a role in mitigating economic concerns tied to potential tariffs.
Commodities and Sector Performance
Commodities responded positively, with the weaker US dollar acting as a tailwind. Precious metals on the ANZ China Commodity Index rose 0.3%, while industrial metals climbed 0.2% and bulk commodities increased by 0.4%. Gold prices also edged up by 0.1% to US$2,708, driven by lingering concerns over potential economic disruptions.
Stock Performances
Standout performers on the S&P/ASX 200 include Liontown Resources (ASX:LTR), which surged 12.7% to $0.71. The jump followed the release of the December 2024 quarter results, showing a 215% spike in spodumene concentrate production and a staggering 674% revenue increase, despite a 5% dip in prices.
Yancoal Australia (ASX:YAL), a key player in the coal sector, gained 7.9% to trade at $6.42 in early trading. On the other hand, Newmont (ASX:NEM), a major gold producer, saw a slight decline, slipping 0.88% to $66.55.
The S&P/ASX 200 index serves as Australia’s benchmark, representing approximately 80% of the country’s equity market through the top 200 ASX-listed companies by market capitalization.
