The Australian Securities Exchange (ASX) edged higher on Wednesday (2 April) taking its lead from US markets, which witnessed a volatile trading session overnight (AEDT) but ended on a positive note.
The S&P/ASX 200 added 48.6 points, or 0.61%, to 7,973.8 points as of 10.30am AEDT. The index has lost 1.09% over the past year.
Six of the 11 sectors moved up in early trade. Materials and energy, however, started the session in the red.
Uncertainty surrounding the US tariffs are creating turbulence in equities markets and keeping downward pressure on commodity markets.
Europe and Canada have both promised to introduce retaliatory tariffs in response to the US tariffs set to come into effect at 7am AEDT on Thursday (3 April).
The ANZ China Commodity Index moved down 0.1% with precious metals, industrial metals and energy all retreating. Bulks, however, advanced 0.2%.
Following yesterday’s Reserve Bank of Australia decision to hold interest rates, ANZ Senior Economist Adelaide Timbrell says while the bank does not feel the need to add additional RBA easing to its forecasts, further weakness in markets stemming from policy uncertainty, or even a prolonged sideways trend after the recent declines, would raise the risk that the RBA eases more than is currently expected.
Gold miners West African Resources (ASX:WAF) and Spartan Resources (ASX:SPR) both retreated in early trade. West African dipped 1.5% to $2.31 and Spartan fell 1.31% to $1.88.
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 & Stock
