Aussie shares rally, dollar gains as Trump takes | Australian Markets

The Australian share market has climbed to a six-week high with Donald Trump not asserting any sweeping tariff measures after taking workplace – however briefly dived when the mercurial American president stated he may do quickly.

The benchmark S&P/ASX200 index completed up 55 factors, or 0.66 per cent, to eight,402.4, its highest close since December 9.

The broader All Ordinaries gained 58.3 factors, or 0.68 per cent, to eight,652.7.

The ASX had been up by as many as 106 factors in morning trading however plunged 70 factors in 10 minutes simply earlier than noon, after Mr Trump stated he may impose levies on Canada and Mexico within days.

“We’re thinking in terms of 25 per cent (tariffs) on Mexico and Canada, because they’re allowing vast numbers of people” into the nation, he advised reporters from behind the Oval Workplace’s Resolute Desk.

“I think we’ll do it February 1,” he added.

These phrases despatched temporary shudders by means of each the ASX and the Aussie greenback, though each had largely bounced back by late Tuesday afternoon.

Simply after 5pm AEDT the Aussie was shopping for 62.37 US cents, up from 62.06 US cents at Monday’s ASX close.

Nevertheless it had been as high as 62.80 US cents earlier than the Oval Workplace tariff remarks, its strongest degree towards the buck since January 7.

“The first few hours of Trump administration have underscored that the policy environment will be dynamic once again, and markets should brace for volatility,” Saxo chief investment strategist Charu Chanana stated.

“Clearly, the markets celebrated too soon with tariff threats missing at the outset in Trump’s inaugural speech.”

However the absence of any threats on China had saved the hopes of negotiation alive, Ms Chanana stated.

Six of the ASX’s 11 sectors completed larger and 4 closed decrease, with tech principally flat.

Utilities was the largest loser, dropping 1.6 per cent as Origin Vitality retreated 2.3 per cent and AGL fell 1.4 per cent.

The financial sector was the largest gainer, rising 1.3 per cent amid positive aspects for all 4 huge banks.

Westpac rose 1.4 per cent to $32.74, NAB climbed 2.1 per cent to $38.87, ANZ superior 2.0 per cent to $30.15 and CBA added 0.7 per cent to $156.20.

The heavyweight mining sector rose 0.9 per cent, with BHP climbing 0.9 per cent to $40.61, Fortescue including 1.1 per cent to $19.37 and Rio Tinto growing 0.4 per cent to $120.61.

Goldminers additionally superior as the dear metallic traded close to a six-week high of $US2,726 an ounce, up from beneath $US2,700 final week.

Northern Star rose 1.6 per cent, Evolution gained 2.2 per cent and Regis Sources grew 3.4 per cent.

Lithium developer Liontown Sources was the best performer within the ASX200, rising 11.9 per cent to a seven-week high of 70.5 cents.

Wesfarmers rose 1.6 per cent to $72.88 after the Kmart and Bunnings proprietor stated it might close down its money-losing e-commerce unit Catch.com.au, which Wesfarmers purchased for $230 million in 2019 however had struggled towards elevated competitors in Australia’s ecommerce industry.

ON THE ASX:

* The benchmark S&P/ASX200 index on Tuesday rose 55 factors, or 0.66 per cent, to eight,402.4

* The broader All Ordinaries gained 58.3 factors, or 0.68 per cent, at 8,652.7.

CURRENCY SNAPSHOT:

One Australian greenback buys:

* 62.37 US cents, from 62.06 at close of business Monday

* 96.93 Japanese yen, from 96.82 yen

* 60.09 euro cents, from 60.24 euro cents

* 50.80 British pence, from 50.83 pence

* 110.53 NZ cents, from 110.75 NZ cents