ASX rallies as Trump pauses tariffs on Mexico and Canada
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The news: Australian shares pared losses from a dramatic selloff on Monday, as US President Donald Trump paused new tariffs on Mexico and Canada.
The numbers: The ASX 200 index was up 0.42% to 8,414.4 by 12:30pm AEDT.
Technology, up 1.66%, was the best performing sector, followed by materials (0.8%) and financials (0.62%).
Gold miners tracked a rise in bullion, with Vault Minerals (4.5%) and Gold Road Resources (2.6%) among the best performers on the ASX 200. Spot gold was up 0.2% to USD2,820.69 an ounce.
Likewise, iron ore miners rallied. Rio Tinto (1.9%), Fortescue (1.6%), BHP (0.6%) and Champion Iron (0.4%) were all higher having tanked on Monday. Iron ore futures edged up 0.1% to USD104.35 in Singapore.
However, oil stocks declined as global crude prices retreated as Mexico and Canada are the largest foreign suppliers of crude to the US. Ampol (-1.6%), Woodside Energy (-0.6%), Karoon Energy (-0.6%) and Santos (-0.5%) dropped while Beach Energy added 1.5%. West Texas Intermediate fell 1.12% to USD72.34 a barrel, while Brent lowered 0.61% to USD75.50.
The context: The US will delay its proposed new tariffs on Mexico and Canada for 30 days after Trump spoke to his counterparts Claudia Sheinbaum and Justin Trudeau this morning.
Both Canada and Mexico had announced countermeasures after Trump on Friday said the US would impose sweeping 25% duties on most imported goods.
Global markets fell on Monday, with the S&P 500 falling as much as 1.93% in morning trading. It recovered sharply after the Mexican tariff pause was announced, trading only 0.48% lower in late morning.
The source: Bloomberg
