ASX Rises as Trump Hints at Tariff Relief

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Following an announcement from ex-President Donald Trump suggesting he might review his earlier tough tariff actions toward China, the Australian stock market has experienced a rebound. During early Wednesday trades, the main S&P/ASX 200 index jumped by 1.8%, countering recent declines sparked by rising trade frictions between the U.S. and China. According to Jessica Amir, a strategist at Moomoo markets, this uplift can be attributed to comments made by U.S. Treasury Secretary Scott Bessent.

He suggested the potential for new trade agreements, mentioning China specifically, which has revitalized investors' optimism. On Tuesday evening, Wall Street saw comparable increases, thereby strengthening the Australian stock market even more. "The suggestion of trade pacts with key economic allies has injected hope," he stated.

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Amir mentioned that Bessent's comments have offered a much-required uplift to the market.

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Trump’s declaration arrives under heavy examination of his administration’s trade strategies, which earlier resulted in a tariff dispute with China. In this clash, the U.S. imposed tariffs as high as 145 percent on Chinese products.

The action caused widespread disruption in worldwide markets, with Australia’s market seeing considerable fluctuation. Given that China continues to be Australia’s top trading partner, increased trade optimism greatly enhanced industries like mining and technology.

ASX recovers due to optimistic trade sentiments

On Wednesday, significant gains were observed among shares of leading export companies. The stock price for BHP advanced by 2.99% to reach $37.60, Rio Tinto saw an increase of 2.37% to hit $114.26, and Fortescue Metals Group jumped by 2.74%, settling at $15.36. Additionally, within the technology sector, where there was a notable decline just two weeks earlier, equities experienced a robust rebound.

ZipCo's stock price jumped by 2.65% to reach $1.55, whereas Life360 experienced an impressive rise of 6.25% to hit $20.57. Even though the overall market was performing well, several experts maintained a wary stance. These professionals warned that although recent increases looked promising in the near term, the enduring health of market expansion would largely hinge upon the real impacts of upcoming trade talks between the U.S. and China—two major global economic powers.

In the foreign exchange markets, the Australian dollar surged past 64 U.S. cents for the first time in almost half a year, rebounding from earlier declines to levels seen during the pandemic era. The resurgence can partly be credited to a softer U.S. dollar, following remarks made by President Donald Trump criticizing Federal Reserve Chair Jerome Powell, which raised concerns regarding possible political influence on interest rate decisions. According to Westpac currency analysts Richard Franulovich and Kaitlyn Buhariwalla, this upward movement of the Aussie dollar was primarily driven by waning faith in the greenback.

The U.S. dollar experienced renewed intense selling pressure early in the week due to President Trump’s escalated criticism of Federal Reserve Chairman Powell," they elaborated. With wavering trust among global investors and worldwide attention focused intently, the resilience shown by the Australian market underscores how significant political events can influence financial markets globally.

The post ASX rises as Trump indicates potential easing of tariffs appeared first on WELLNESSINVESTIGATOR .

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