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Highlights
- ASX 200 fluctuates as global trade concerns persist.
- Gold prices surge to record highs, boosting mining stocks.
- Mixed movements in US markets amid Federal Reserve comments.
The Australian share market showed signs of uncertainty as trade tensions and global economic factors influenced investor sentiment. ASX 200 futures edged down by 0.1% to 8,440 points following the close of US trading, while the index closed marginally higher at 8,484 points, gaining just 1 point (0.01%).
Gains in the Industrials (+0.98%), Information Technology (+0.88%), and Telecommunications (+0.75%) sectors provided some support, offsetting declines in Health Care (-2.94%), Energy (-0.30%), and Consumer Staples (-0.09%).
Trade War Concerns Impact Market Sentiment
The local market remained resilient despite regional market weaknesses and a cautious lead from Wall Street. Investors continued to weigh the impact of newly imposed 25% tariffs on steel and aluminum imports by the US government. While Australian exports in these sectors remain relatively small, the broader implications of trade tensions contributed to market volatility.
Gold prices hit fresh record highs, reinforcing their status as a key hedge against economic uncertainty. The surge benefited mining companies, with Evolution Mining (ASX:EVN) climbing 4.89% to $6.22, Northern Star Resources (ASX:NST) gaining 4.04% to $18.54, and De Grey Mining (ASX:DEG) rising 3.88% to $2.14.
Mixed US Market Performance
Wall Street closed with a mixed performance as investors balanced Federal Reserve Chair Jerome Powell’s cautious outlook on interest rates with ongoing trade concerns. Powell reiterated that there was no immediate need to adjust monetary policy, citing strong economic fundamentals and inflation levels above the 2% target.
Corporate updates saw Apple (NASDAQ:AAPL) rise 2.2% to $232.62 after announcing an artificial intelligence partnership with Alibaba. Conversely, Tesla (NASDAQ:TSLA) fell 6.3% to $328.50 following reports that CEO Elon Musk’s consortium has made a $97 billion bid to acquire OpenAI. Tesla’s stock remains significantly lower, approximately 33% below its mid-December peak.
European Markets Hit Record Highs
European indices reached record levels as investors assessed potential retaliatory measures from the European Union in response to new US tariffs. Basic resources stocks took a hit, with ArcelorMittal and Voestalpine dropping 1.9% and 0.9%, respectively. Meanwhile, banking stocks led sectoral gains with a 1.3% increase.
Commodities and Currency Movements
Oil prices extended their rally amid geopolitical tensions, with Brent crude rising 1.5% to $77.00 per barrel. The Australian dollar strengthened slightly, hovering near US62.95 cents.
Small-Cap Highlights
The S&P/ASX Small Ordinaries index added 0.21% to close at 3,220.10, reflecting continued interest in emerging stocks. Several small-cap companies announced key updates:
- Percheron Therapeutics (ASX:PTX) provided an update on its partnering activities after a Phase IIb trial setback.
- AuKing Mining (ASX:AKN) outlined plans for the Cloncurry Gold Project, including a $2 million note raising to support project development.
- St George Mining (ASX:SGQ) entered into an MoU with Xinhai for collaboration on the Araxá niobium-REE project in Brazil.
- Brightstar Resources (ASX:BTR) granted Cazaly (ASX:CAZ) an option to earn an 80% stake in the Goongarrie Gold Project.
- FireFly Metals (ASX:FFM) announced promising drilling results at the Green Bay Copper-Gold Project, reinforcing potential resource expansion.
As global economic conditions remain fluid, investors continue to monitor developments in trade policy, inflation data, and corporate earnings to navigate market movements.
