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Highlights
- ASX surges on global trade optimism
- Energy and mining stocks lift overall market
- Wall Street rebound boosts local investor sentiment
The Australian sharemarket jumped higher in early trading, mirroring a strong rebound on Wall Street and renewed optimism around global trade negotiations. A significant overnight rally in US equities, driven by positive signals on US-China trade relations, set the tone for a bullish start on the ASX.
At the open, the benchmark S&P/ASX 200 surged 138 points, or 1.77%, reaching 7,954.90 within the first 20 minutes of trade. All 11 sectoral indices advanced, with the energy, technology, and healthcare sectors leading gains.
Mining and Energy Stocks Climb
Resource giants posted robust performances, helping underpin market strength. Shares of BHP Group (ASX:BHP), Rio Tinto (ASX:RIO), and Fortescue Metals Group (ASX:FMG) all rose around 2%, supported by firmer commodity prices. Energy producers also rallied as oil prices climbed sharply overnight. Woodside Energy (ASX:WDS) gained 2.5%, while Santos (ASX:STO) advanced by 3.7%.
Banking Sector Adds Momentum
Financial stocks added further momentum to the market’s positive tone. Three of the Big Four banks saw gains exceeding 2%, reflecting broad-based optimism and expectations of a more stable macroeconomic environment.
Wall Street’s Rally Sends Strong Signal
The strong performance on the ASX followed sharp gains across major US indices. The Dow Jones Industrial Average climbed 2.66%, while the S&P 500 and Nasdaq rose by 2.51% and 2.71%, respectively. Markets responded positively to comments from US Treasury Secretary Scott Bessent, who described the ongoing trade standoff with China as “unsustainable,” suggesting de-escalation may be on the horizon.
Adding to the upbeat sentiment, US President Trump noted that significant tariff reductions would occur if a trade deal is achieved. Investors also found relief in Trump’s statement that he has no intention of removing Federal Reserve Chair Jerome Powell, despite ongoing disagreements over interest rate policy.
Global Indicators and Market Outlook
Globally, European indices also ended higher. The UK’s FTSE 100 rose 0.64%, France’s CAC 40 edged up 0.56%, and Germany’s DAX gained 0.41%. In commodities, Brent crude oil rose 1.71% to US$67.39 per barrel, while US WTI increased 1.95% to US$64.31 per barrel. Spot gold remained steady at US$3,380.94 per ounce. Bitcoin also moved higher, up 4.66% to US$91,618.39.
Looking ahead, investors will be monitoring S&P Global Purchasing Managers' Indices for Japan, Europe, and the US for further macroeconomic direction. The confluence of positive US news and improved trade outlook has reinvigorated confidence across Australian markets.
