US gains on tech exemptions and a potential pause on auto duties, could help the ASX rise today – although it’s no guarantee.
ASX 200 futures were up 0.2% to 7792 points after US markets closed, with all eyes now on The Reserve Bank of Australia (RBA)’s April interest rate minutes meeting around 11.30am AEST.
The S&P/ASX 200 Index closed 102.1 points higher on Monday, gaining 1.34% as investor sentiment improved following further easing of United States tariff measures, particularly on key technology goods.
Information Technology led the advance with a 2.6% gain, buoyed by strong performances from WiseTech Global, up 3.1%, and Xero, which rose 2.3%.
Resource stocks also contributed meaningfully to the day’s rise. Heavyweights BHP Group added 2.7%, Rio Tinto gained 1.2%, and South32 climbed 2.2%. Gold producers extended their recent run on the back of firmer gold prices, with Northern Star Resources up 1.5% and Evolution Mining rising 2.6%.
The major banks provided further momentum, with Commonwealth Bank and ANZ Group each lifting 1.7%, adding significant weight to the benchmark index.
Defensive sectors lagged in contrast, with Consumer Staples falling 0.45% as investors rotated into growth. Woolworths and Coles eased 0.5% and 0.24%, respectively.
US markets edge higher as early tariff relief boosts sentiment
US sharemarkets closed higher on Monday, buoyed by initial gains driven by tariff exemptions for select technology products. Benchmarks rose strongly in early trade following the Trump Administration’s announcement that computers and electronics would be excluded from its reciprocal tariff measures. However, the rally lost momentum later in the session after officials clarified that sector-specific tariffs would still be implemented over time.
Apple Inc led early advances, climbing as much as 6% before ending the session up 2%. Most sectors within the S&P 500 ended in positive territory, with Real Estate, Utilities, Consumer Staples and Financials leading the gains. Consumer Discretionary was the only sector to close marginally lower.
Goldman Sachs Group Inc gained up to 4% after reporting better-than-expected first-quarter earnings, supported by record equity trading. The investment bank also announced a share buyback program of up to US$4 billion, contributing to a 6% increase in revenue to US$15.06 billion. The KBW Bank Index rose 1.4%, with most components posting gains.
Automakers also advanced amid reports of potential tariff exemptions for car parts. Ford Motor Company shares rose as much as 4.6% after earlier losses, while General Motors Company gained up to 5%.
The Dow Jones Industrial Average added 312 points or 0.8%, the S&P 500 rose 42 points or 0.8%, and the Nasdaq Composite increased by 107 points or 0.6%.
European markets rally on easing tariff tensions; banks and insurers lead gains
European sharemarkets closed firmly higher on Monday as investor sentiment improved following signs of pragmatism from the United States on tariffs. All sectors in the pan-European benchmark index posted gains, with financials—particularly banks and insurers—leading the advance on the back of easing bond yields.
Major lenders including Deutsche Bank, Barclays, BNP Paribas, UniCredit and Banco Santander saw share price increases of approximately 4%.
- The continent-wide FTSEurofirst 300 index advanced 2.6%.
- In London, the FTSE 100 index added 170 points, or 2.1%.
However, in US trade, shares in luxury goods group LVMH fell 6% after its quarterly results revealed a 5% decline in leathergoods and fashion revenue.
Currency markets
Currencies generally strengthened against the United States dollar on Monday, as selling pressure weighed on the Greenback.
- The euro rose from around US$1.1380 to US$1.1425 before settling near US$1.1347 by the US close.
- The Australian dollar climbed from US63.03 cents to US63.43 cents and was quoted near US63.23 cents at the close.
- The Japanese yen firmed to 142.24 per US dollar before softening to end near JPY143.05.
Commodities see mixed trade
Oil prices posted modest gains, with investors balancing tariff-related sentiment and growth outlooks against developments in US-Iran talks over the weekend.
- Brent crude rose US$0.12, or 0.2%, to US$64.88 a barrel.
- US Nymex crude edged up US$0.03 to US$61.53 a barrel.
- Gold prices pulled back from record highs, with futures down US$18.20, or 0.6%, to US$3,226.30 an ounce. Spot gold traded near US$3,210.34 at the close.
- Iron ore futures rose US103 cents, or 1%, to US$100.08 per tonne.
What about small caps?
The S&P/ASX Small Ordinaries (XSO) gained 1.41% yesterday to finish at 2,960.30. Over the past five days, the index has gained 7.59%.
It has been a quiet morning on the news front so far, but you can read about the following and more throughout the day.
- St George Mining Ltd has highlighted the growing strategic relevance of its 100%-owned Araxá niobium-rare earth elements (REE) Project in Minas Gerais, Brazil, against the backdrop of recent geopolitical and trade developments affecting global rare earth supply chains. The company emphasised the significance of Araxá's large, high-grade REE deposit in light of increasing international focus on secure and diversified sources of critical minerals.
- Constellation Resources Ltd released its quarterly report for the period ending March 31, 2025, outlining progress at its projects in Western Australia and ongoing assessment of new resource opportunities. The company continues to advance the Ularring Copper Gold Project, where the Centre Forest Prospect has revealed a well-developed copper-gold horizon. This mineralisation is interpreted to be hosted within a regional shear corridor linked to an intrusive margin, akin to major deposits such as Boddington and Caravel. Constellation also reported on its significant natural hydrogen portfolio, which spans 87,602 square kilometres across nine Special Prospecting Authorities with Acreage Options (SPA-AOs) in the Edmund-Collier, Yerrida and Ashburton Basins. These tenements are intersected by the Goldfields gas transmission pipeline, presenting a viable market pathway in the event of a discovery.
- Yandal Resources Ltd has received the majority of assay results from its reverse circulation (RC) drilling program at the New England Granite (NEG) during the March 2025 quarter. The 27-hole program targeted the eastern margin of the NEG and several structural features adjacent to the Siona gold discovery. Drilling spanned over 5.5 kilometres of strike, with results currently being assessed.