Energy and Trade Hopes Spark Gains in ASX 200 as Key Stocks Rally

May 07, 2025 02:47 PM AEST | By Team Kalkine Media

Google News:

Energy and Trade Hopes Spark Gains in ASX 200 as Key Stocks Rally — Image source: Shutterstock

Recent News

Fed Daly eyes fall for possible policy shift

Fifth Third Announces Three-Year, $20M Investment in North Nashville

Inogen Alliance Associate Awards: Environment Analyst Sustainability D...

New Zealand Construction Report 2025: Output to Contract by 1% Due to...

Highlights

Energy and mining sectors drive ASX gains

CSL drags healthcare lower

US-China trade talks boost investor sentiment

Australia's sharemarket reversed a two-day slide on Wednesday, supported by rising energy and mining stocks, and optimism around upcoming US-China trade talks and fresh economic stimulus measures from China.

The ASX 200 added 29.8 points or 0.3% to reach 8178.6 by mid-afternoon, as eight of the 11 sectors advanced. The broader All Ordinaries Index also rose 0.3%, reflecting a market buoyed by hopes of renewed momentum in the global economy.

China’s central bank unveiled a 25 basis point cut to its key interest rate, lowering it to 1.5%, signaling further support to its slowing economy. This news coincided with the announcement that US Treasury Secretary Scott Bessent will meet senior Chinese officials in Switzerland on Thursday, a development raising hopes for progress in resolving the prolonged trade tensions.

Oil and iron ore prices moved higher on expectations that lower tariffs and stimulus could lift commodity demand in China. Brent crude climbed toward US$63 a barrel, lifting energy giants Woodside Energy (ASX:WDS) by 1.5% and Santos (ASX:STO) by 2%. Major iron ore miners BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) added 0.7% and 1.1%, respectively.

Banking stocks were among the top contributors to the index’s rise, with National Australia Bank (ASX:NAB) gaining 2.5% despite reporting results that missed earnings expectations. ANZ Group (ASX:ANZ) added 0.8% while other major banks saw modest movement.

However, healthcare weighed on the market, as sector leader CSL Limited (ASX:CSL) fell 2% and Telix Pharmaceuticals (ASX:TLX) declined 2.6%, largely attributed to profit-taking following recent strong performances.

Investors are closely watching the US Federal Reserve’s May policy meeting. The Fed is widely anticipated to hold rates steady, with markets reacting to any hint of future monetary moves.

In corporate news, Nuix (ASX:NXL) dropped 16.8% after withdrawing full-year revenue guidance due to customer delays. On the upside, Boss Energy (ASX:BOE) surged 10.2% following a bullish outlook shared at a major industry conference.

Retailer Temple & Webster (ASX:TPW) climbed 7.2% on improved earnings guidance, while Zip Co (ASX:ZIP) soared 11.8% after reaffirming a strong FY2025 earnings target. AUB Group (ASX:AUB) added 7% after forecasting a profit at the top end of its guidance.

As investor focus shifts towards economically sensitive sectors amid the global recovery narrative, the market also sees growing interest in ASX dividend stocks for stability and income generation. The broader ASX200 index continues to reflect shifting investor sentiment amid global developments.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.