Investors took comfort in what appeared to be a softening of Trump’s stance on China. His rhetoric around the US Federal Reserve sparked a wave of optimism that rippled through international markets.
The S&P/ASX 200 rose by 47.7 points to close at 7968.2 on Thursday. This marks another positive session ahead of Friday’s Anzac Day public holiday. The benchmark index surged on Wednesday, reaching 1.3 per cent after the US President hinted that current tariffs on Chinese goods could be significantly reduced. Trump also confirmed he had no plans to replace Federal Reserve Chair Jerome Powell.
The upbeat mood across markets stemmed largely from Trump’s altered tone, which contrasted with his earlier aggressiveness. His latest comments offered investors a glimmer of hope that tensions might de-escalate, removing one of the major clouds hanging over the global economy.
Gold and iron ore miners were among the standout performers, with Newmont surging by 4.5 per cent. The move came as the price of gold surged past US$3500 an ounce for the first time, driven by demand for safe-haven assets amid continued geopolitical uncertainty.
Paladin Energy also enjoyed another stellar session, adding 12 per cent. Key players in the sector—BHP, Rio Tinto and Fortescue Metals—each posted gains of around 1 per cent.
Commonwealth Bank added 0.6 per cent while Westpac gained 1.1 per cent. NAB and ANZ also closed higher, up 0.6 and 1.6 per cent respectively. Gains in the banking sector highlighted renewed confidence in the domestic financial landscape. Investor sentiment was further buoyed by indications that the Australian economy could be shielded from the fallout of future changes in global trade policy.
Healthcare stocks rose, led by dual-listed sleep disorder treatment company ResMed, which soared 8.5 per cent. The surge came after the company announced an 8 per cent rise in quarterly revenue and reassured investors it faced no direct impact from US trade tariffs.
The information technology sector also finished in positive territory, and WiseTech Global added 2.5 per cent. However, not all tech names fared equally, with Xero slipping 0.6 per cent by the close.
Australian investors took cues from a strong overnight performance on Wall Street. The S&P 500 climbed 1.7 per cent, while the Dow Jones rose by 1.1 per cent and the tech-heavy Nasdaq surged by 2.5 per cent. The rally followed Trump’s more conciliatory remarks regarding Fed Chair Jerome Powell.
Trump’s comments also had an immediate impact on the US bond market. The drop in yields suggested investors were regaining some confidence in the safety of US government debt. This comes after recent fears that political interference might undermine its traditional safe-haven status.
Contact Accountancy Insurance
We would love to hear from you.
About Accountancy Insurance
Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients.
Find out why.