Commodities got a shot in the arm overnight (AEST) with the positive momentum flowing through from the progress being made towards repairing the US and China’s trade relationship.
The headline ANZ China Commodity Index advanced 0.7%, with precious metals rising 0.4%, industrial metals adding 0.8%, bulks lifting 0.4% and energy jumping 1%.
ANZ Economist Sophia Angala says base metals, including copper, gained as the “relief rally” from the US-China trade truce extended to a second day.
“US Secretary Scott Bessent said that the trade deal from Trump’s first tariff war with China provides a very good framework for upcoming discussions,” Angala says.
“The macro backdrop overshadowed signs that supply constraints are easing.”
Copper rose 0.8% to US$9,600 ($14,828) a tonne, nickel lifted 0.6% to US$15,735 a tonne, aluminium climbed 0.4% to US$2,490 a tonne and iron ore added 0.5% to move above the US$100-a-tonne mark.
Gold was also higher after US inflation data pointed to stronger potential for further interest rate cuts this year. The safehaven metal was fetching around US$3,255 an ounce earlier today (14 May).
However, the S&P/ASX200 opened lower today, edging back 8.2 points to 8,260.8 points by 10.30am (AEST).
The index is up 1.01% over the past five days and is currently 4.11% off its 52-week high.
Six of the 11 sectors started the session in the red. However, energy climbed 0.18%, materials rose 0.15% and industrials inched up 0.06%.
Information technology was the best performing sector, gaining 1% in early trade and rallying 8% in the past five days.
Diversified miner IGO (ASX:IGO) slipped 2.61% to $4.30, while mineral sands producer Iluka Resources (ASX:ILU) retreated 2.38% to $4.11.
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
