The Australian sharemarket is expected to rise today, following a bump on Wall Street caused by renewed signs that Trump might scale back his on-again, off-again tariffs.
Back home, all eyes will be on the treasurer, with a pre-election federal budget to be announced tonight. Reserve Bank of Australia Assistant Governor Brad Jones is also set to speak today.
US markets rallied overnight, with the S&P 500 climbing 1.8% to close at 5,767 points – its highest level in over two weeks – as investor sentiment improved following the latest indications from the administration.
Bump on Wall Street
The Dow rose 1.42% to 42,583.32, while the tech-heavy Nasdaq Composite gained 2.27% to 18,188 points.
There was some temporary optimism after media reports suggested that Trump may narrow the scope of upcoming tariffs, taking the foot off the pedal on a broader trade war, for now.
A Trump administration official remarked, however, that no final decision had been made and the situation remained fluid.
In related news, Tesla surged on the S&P 500 by 11.9% as investors bought the dip on the electric vehicle maker, which has slumped in recent weeks as a result of its brand being so strongly associated with its current CEO.
Meanwhile, Chinese EV giant BYD Company Limited reported a record 73.1% jump in fourth-quarter net profit to 15 billion yuan (A$3.3 billion), driven by competitive pricing and strong sales.
Annual profit reached 40.3 billion yuan, with revenue up 29% to 602.3 billion yuan.
The Warren Buffett-backed company is also exploring further European expansion, with Germany flagged as a potential site for a third manufacturing plant.
Elsewhere on Wall Street, Nvidia Corporation rose 3.1%, and Advanced Micro Devices Inc jumped 11.9% as battered technology stocks rebounded.
Hormel Foods Corporation was among the session's worst performers, though specifics on its decline were not detailed.
Causes of correction have not evaporated
CFRA Research chief investment strategist Sam Stovall told Reuters, “Investors are experiencing a slight sigh of relief, but at the same time they are cynical about how long this may last ... The causes of this manufactured correction have not evaporated.”
In Europe, investors were more cautious about the tariff news from the US – markets ended slightly lower there, with the continent-wide FTSEurofirst 300 dipping 0.2%, while the UK FTSE 100 index slipped 0.1%.
Food and beverages stocks led declines, falling 1.4%. Meanwhile, the eurozone composite purchasing managers’ index (PMI) rose to 50.4 in March, marginally above February’s 50.2.
Currencies and commodities
The US dollar strengthened, pressuring major currencies. The euro slipped to US$1.0782, the Australian dollar dipped to US62.80 cents, and the Japanese yen weakened to JPY150.65.
Oil prices gained 1.2% after the Trump regime pledged 25% tariffs on countries importing Venezuelan oil, alongside fresh sanctions on Iran. Brent crude rose to US$73.00 per barrel and West Texas Intermediate to US$69.11.
Base metal prices edged lower on a stronger greenback, with copper and aluminium down 0.5% and 0.6%, respectively. Gold fell 0.2% to US$3,015.60 an ounce, while iron ore rose 0.2% to US$102.21 per tonne.
In China, the one-year medium-term lending facility rate will be announced, while in the US, key data on home prices, consumer confidence and manufacturing is expected.
Market snapshot
- ASX 200: -0.1% to 7,921 points
- Australian dollar: +0.3% to 62.85US cents
- Asia: Nikkei +0.2%, Hang Seng +0.3%, Shanghai +0.1%
- Wall Street (Friday): Dow +0.1%, S&P 500 +2.1%, Nasdaq +2.6%
- Europe (Friday): DAX -0.5%, FTSE -0.6%, Eurostoxx -0.5%
- Spot gold: flat at $US3,024/ounce
- Brent crude: -0.3% to $US71.97/barrel
- Iron ore (Friday): -0.6% to $US99.90 a tonne
- Bitcoin: +0.5% to $US85,626
Source: ABC