AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Australian stocks achieve significant gains amidst global tariff pause
- Commodities and tech sectors see notable advances
- Uncertainty and volatility persist despite positive market trends
The Australian share market experienced a remarkable surge, marking its most impressive performance since 2020. This rally was ignited by Wall Street's strong performance following a strategic pause on tariffs announced by US President Donald Trump. This decision temporarily halted reciprocal tariffs on over 75 countries, leading to a widespread optimism in global markets.
As of mid-afternoon, the S&P/ASX 200 Index (ASX:XJO) climbed 4.5%, adding 333.9 points to reach 7708.9. This upswing was supported by a robust increase in the Australian dollar, which regained strength to US61¢. The positive momentum in the market reflects a heightened risk-on sentiment among investors.
The pause on tariffs, which will last for 90 days, prompted a significant relief rally on Wall Street, propelling the S&P 500 to a 9.5% increase—its largest single-day gain since 2008. This added approximately $US4.3 trillion to the market, demonstrating the massive impact of geopolitical events on financial markets. However, US futures indicated a potential downturn ahead.
In response to the US tariff increase to 125% on Chinese exports, China retaliated by raising tariffs on US goods to 84%. Despite these tensions, markets in Japan and South Korea outperformed, with China showing more subdued gains.
Market strategist Jessica Amir from investment platform MooMoo noted the ongoing volatility and the potential impact of these tariffs on businesses, indicating that the upcoming US earnings season would be particularly telling.
The enthusiastic trading session saw significant gains across various sectors. In the commodities market, iron ore (ASX:RIO) advanced by 0.8% to $US95.50 a tonne. Similarly, both gold and bitcoin saw increases, though oil prices dipped by 1.4% after an initial rise.
Notable movements were observed in the technology sector, with Tesla and Nvidia boosting the Nasdaq by over 12%. On the ASX, WiseTech Global (ASX:WTC) and Life360 (ASX:360) recorded increases of 7.4% and 10.5%, respectively. Additionally, Goodman Group (ASX:GMG) and DigiCo (ASX:DCG) experienced substantial gains.
In other news, Qube (ASX:QUB) saw a 4.1% rise after the Australian Competition & Consumer Commission approved its acquisition of a Melbourne-based terminal, albeit with certain conditions. Meanwhile, Aussie Broadband (ASX:ABB) announced plans for expansion in the mobile phone sector, securing a new agreement with Optus to utilize its networks, leading to a 4.5% increase in its shares.
The day's trading underscored a significant risk appetite among investors, driven by international trade developments and domestic corporate actions, although the broader market context remains fraught with uncertainty.
