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Highlights
The ASX 200 advanced to a fresh high, supported by strength in energy and mining sectors, following progress in trade discussions between the United States and China. Index constituents such as Woodside Energy Group Ltd (ASX:WDS), which is part of the S&P/ASX 200 Energy index, and BHP Group Ltd (ASX:BHP), included in the S&P/ASX 200 Materials index, posted notable gains as commodity prices firmed on optimism surrounding global trade.
US-China agreement drives commodity optimism
Market sentiment improved after extended trade discussions in London led to a draft framework between US and Chinese officials. The agreement reportedly aims to ease strategic export barriers, specifically around rare earth minerals, which are key components in multiple high-demand industries. These minerals are vital for electric vehicles, telecommunications, and defence systems, and China remains a dominant global supplier.
The agreement marked a shift from recent tensions and contributed to gains across commodity-related equities on the ASX. Companies like BHP Group Ltd (ASX:BHP) benefited from an uptick in iron ore pricing in offshore markets, while Woodside Energy Group Ltd (ASX:WDS) moved higher alongside modest increases in oil prices.
Zip Co jumps on strong US transaction performance
Zip Co Ltd (ASX:ZIP), part of the S&P/ASX 200 Financials index, delivered a strong performance following updated earnings guidance. The uplift in outlook came after solid results in the North American market, where the company reported substantial growth in transaction volumes.
The company's leadership attributed the performance to the strength of its core model, particularly in the US, where demand continues to grow. The announcement led to a sharp rise in ZIP shares on the day, driving momentum within the broader BNPL sector.
Fletcher Building gains on strategic interest
Fletcher Building Ltd (ASX:FBU), a major player in construction and building materials, also featured among top performers. The company disclosed that several parts of its business have received interest from external parties, prompting strategic review discussions.
This activity boosted Fletcher’s stock performance and placed focus on the broader industrials segment of the ASX. FBU is part of the S&P/ASX 200 Industrials index, which saw a positive reaction to the company’s update.
Qantas drops amid sector rotation
While several major names saw positive moves, Qantas Airways Ltd (ASX:QAN), part of the S&P/ASX 200 Consumer Discretionary index, experienced weakness. The airline’s stock declined as traders shifted focus towards commodities and financials, leading to underperformance in travel-related names.
Despite the broader market strength, this divergence highlighted sector-specific movement driven by macro developments, particularly in trade and energy markets.
Driven by macro catalysts and sector momentum
The ASX 200’s movement reflected the convergence of global diplomatic progress and sector-specific momentum. Gains in resources and energy sectors underpinned the index, while financials and industrials added further weight. A backdrop of easing trade tension contributed to the overall sentiment, driving renewed interest in large-cap equities with global exposure.
