The Australian Securities Exchange (ASX) made marginal moves lower today (6 May), while gold has rebounded following last week’s selloff.
The S&P/ASX200 inched down 10.9 points, or 0.13%, to 8,146.9 points by 10.40am (AEST).
The index is now up just under 1% over the past five trading sessions.
Six of the 11 sectors were in the red, led by information technology with a 1.13% drop. Materials and energy, however, were in positive territory in early trade, advancing 0.44% and 0.24%, respectively. Industrials inched up 0.05%, but utilities dipped 0.18%.
ANZ Senior Economist Adelaide Timbrell says gold’s rebound signals that the market remains unconvinced the risks around US President Donald Trump’s trade war have subdued.
“President Trump suggested his administration could strike trade deals with some countries as soon as this week,” Timbrell says.
“India floated zero tariffs on steel, auto parts and drugs on a reciprocal basis in trade talks with the US.
“However, he signalled there is no imminent accord with China. This should see haven buying remain elevated, which has driven gold to record high levels in recent weeks.”
Gold was fetching around US$3,328 ($5,146) an ounce at the time of writing.
This saw the gold miners dominate the top movers. Ramelius Resources (ASX:RMS) rose 4.96% to $2.75, West African Resources (ASX:WAF) climbed 4.82% to $2.39, Evolution Mining (ASX:EVN) advanced 4.56% to $8.49 and Vault Minerals (ASX:VAU) lifted 4.55% to $0.46.
Iron ore futures advanced to US$96.40 overnight on Trump’s warnings that business has pretty much stopped between the US and China.
Timbrell notes that China has little reliance on the US as an export destination, but a global trade war could disrupt its 8-10 million tonnes in annual exports to other international destinations.
Iron ore prices were also lifted on hopes that Beijing will provide further stimulus to support domestic demand.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Emerald Gold
