2 weeks Ago By Adrian Black
Australian shares have continued higher, tracking with Wall Street as temperatures cool around US tariff policy and threats to depose a central bank leader. The S&P/ASX200 sprung into the green after the opening bell and rose 45.4 points, or 0.
57 by noon, to 7965.9, as the broader All Ordinaries gained 48.3 points, or 0.
59 per cent, to 8174.4. The continued rise came after a solid US session with the S&P500 up 1.
79 per cent, the tech-heavy Nasdaq closing 2.61 per cent higher and the Dow Jones Industrial Average gaining 1.22 per cent.
"US equities finished higher overnight on optimism surrounding an easing in US-China trade tensions and President Trump's confirmation that he is not looking to replace US Federal Reserve Chair Jerome Powell," IG Markets analyst Tony Sycamore said. "At the same time, uncertainty around US trade policy, the Fed's independence, and concerns over slowing growth have encouraged flows out of US equity markets into low-beta defensive equity markets, including the S&P/ASX200." Despite the greenshoots of optimism, US Treasury Secretary Scott Bessent has said the 145 per cent tariffs on China, and China's 125 per cent duties on US imports, would have to come down before talks began.
"I would not be surprised if they went down in a mutual way," Mr Bessent said, confirming the US would not be first to act. Local sectors were mixed, with eight of 11 trading higher by midday as materials stocks jumped 1.5 per cent with miners of iron ore, gold and rare earths all broadly in the green.
Gold stocks rebounded after falling on Wednesday, as the precious metal makes its way back towards its $US3500 peak reached on Tuesday. Financials lifted 0.6 per cent, as the Commonwealth Bank consolidated after hitting an intraday record of $168.
70 on Wednesday. The big four were up between 0.6 per cent and 0.
8 per cent each, while financial conglomerate Macquarie is up more then seven per cent in three sessions after announcing plans to offload its North American and European public investments business to Nomura. The energy sector was a laggard, down 0.8 per cent after oil prices slipped more than four per cent overnight following reports several OPEC+ members would suggest output hikes in June.
Brent futures were trading at $US66.28 a barrel, down from $US68.49 at 5pm on Wednesday.
Health care stocks rose 0.5 per cent, as shares in sleep device manufacturer Resmed rallied 7.2 per cent after the group boosted third-quarter revenue by eight per cent and boss Mick Farrell confirmed its devices were exempt from US tariffs.
Bitcoin is trading sideways after surging almost 10 per cent since Monday to above $US93,400 ($A146,900). With the local bourse on track for its second straight week of gains, investors are looking ahead to Wednesday's all-important quarterly inflation print to gauge the likelihood and degree of a rate cut at the Reserve Bank's May meeting. Rates markets are pricing in a cumulative 115 basis points of cuts by the end of the year, and have fully priced a 25 basis point cut for the May 20 decision.
The Australian dollar is buying 63.53 US cents, down from 63.97 at Wednesday's ASX close.
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