Equities markets found some breathing space overnight after speculation surfaced that a pause in US tariffs might have been on the cards.
The S&P/ASX 200 followed suit, advancing 81.4 points, or 1.11%, to 7,424.7 points in early trade today (8 April). The index has lost 6.32% over the past five trading sessions and dropped 4.68% over the past year.
Materials moved up 0.69%, making it the best performing sector in early trade, rebounding from its recent decline but still down 8.86% over the past five days.
Energy rose 0.2%, industrials added 0.09% and utilities was up 0.05%.
The rumours of a possible pause in the roll-out of tariffs were quickly quashed by the White House.
ANZ Economist Sophia Angala says these contrasting tariff messages caused wild swings in equity markets overnight (AEST).
“Intraday, there were reports indicating Trump may be willing to consider a 90-day pause on tariffs for all countries except China, but this was then refuted by the White House,” she says.
“Trump posted on social media that if China does not withdraw its 34% retaliatory tariffs by tomorrow, the US will impose an additional 50% tariff, effective 9 April. Trump added that all dialogue with China will be terminated in such an event.”
Commodities, including gold, continue to remain under pressure, though copper managed a rebound at one point amid opportunistic buying from Beijing, according to Angala.
“Gold suffered its worst three-day selloff in more than four years amid the indiscriminate selling across global markets,” Angala says.
“This comes amid signs that the rally in the precious metal had been overdone. Weakness across equity markets appears to have forced many investors to look at ways of adding liquidity.”
Whitehaven Coal (ASX:WHC) was an early mover, climbing 6.9% to $4.65.
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 & iStock
