Kalkine : S&P/ASX 200 Edges Up as Trade Talks Boost Mining and Energy Shares

June 06, 2025 03:52 PM AEST | By Team Kalkine Media

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Kalkine : S&P/ASX 200 Edges Up as Trade Talks Boost Mining and Energy Shares — Image source: shutterstock

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Highlights

Australian shares gained as global trade dialogue between the US and China eased tension.

Mining firms like BHP, FMG, and RIO benefited from improved commodity sentiment.

Energy stocks advanced while banks saw mild pullback on policy rate expectations.

Australian equities moved higher with gains concentrated in mining and energy sectors. The S&P/ASX 200 index, which includes BHP Group Ltd (ASX:BHP), Fortescue Metals Group Ltd (ASX:FMG), and Rio Tinto Ltd (ASX:RIO), responded to renewed optimism following talks between US President Donald Trump and Chinese President Xi Jinping. The improved diplomatic tone supported sentiment around commodity exports, lifting key sectors on the Australian Securities Exchange.

Mining Stocks React to Commodities Optimism

Mining companies featured prominently among the top performers as positive momentum carried across the iron ore and metals space. BHP Group Ltd (ASX:BHP) and Fortescue Metals Group Ltd (ASX:FMG) showed resilience amid renewed interest in industrial commodities. Rio Tinto Ltd (ASX:RIO) also moved upward in line with broader sector strength. The dialogue between major global economies eased trade concerns, providing a more supportive backdrop for commodity-linked equities.

Energy Sector Benefits from Crude Strength

Oil and gas shares rallied alongside rising international crude benchmarks. Companies such as Woodside Energy Group Ltd (ASX:WDS) and Santos Ltd (ASX:STO) gained as geopolitical calmness supported expectations for stable demand. Higher oil benchmarks contributed to a positive session for energy producers, adding further strength to the resource-heavy composition of the Australian share market.

Gold Stocks Pull Back as Optimism Builds

Gold-related companies saw a slight decline as safe-haven demand cooled. Firms like Northern Star Resources Ltd (ASX:NST) and Evolution Mining Ltd (ASX:EVN) moderated following recent strength. The retreat in gold came as market participants responded to reduced uncertainty, shifting capital flows back to growth-sensitive sectors.

Banking Sector Experiences Mild Decline

Shares in the major banks, including Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Ltd (ASX:NAB), and Westpac Banking Corporation (ASX:WBC), edged lower during the session. The Reserve Bank of Australia has signaled flexibility on monetary policy, influencing sentiment around financial stocks. These developments weighed on the sector despite a strong performance earlier in the week.

Broader Market Outlook Tied to Trade Relations

Market action highlighted how closely economic performance is linked with global diplomacy. As trade conversations progress between major economies, Australian export-oriented sectors remain sensitive to geopolitical signals. The S&P/ASX 200, being resource-weighted, reflects such international shifts prominently, especially when commodity pricing and policy sentiment align.

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