Australian shares edge higher in early trading
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More news: The Australian sharemarket was slightly higher in early trading, with investors staying on the sidelines ahead of the Easter long weekend amid concerns over the impact of global trade tensions.
The benchmark S&P/ASX 200 index was up 10.7 points or 0.14% to 7,769.60 after the first half hour of trade, with gains in energy and materials sectors offsetting losses in financials, healthcare and technology stocks.
BHP shares are up 0.6% after the resources giant kept its full-year production guidance despite mixed results for third quarter output, while Rio Tinto and Fortescue Metals Group were up 2% and down 0.8% respectively. Energy majors Woodside and Santos were up more than 2% on positive news for both companies, while only two of the Big Four banks were trading in the green.
Earlier, major US stock indices ended sharply lower following an impairment from Nvidia and a warning by Federal Reserve Chair Jerome Powell about the economic impact of tariffs.
Australian shares to follow Wall Street lower after Powell tariff warning
The news: The Australian sharemarket is set to open lower after US stocks fell sharply following an impairment from Nvidia and a warning by Federal Reserve Chair Jerome Powell about the economic impact of tariffs.
The numbers: Updated at 7.25am AEDT:
- ASX futures: down 26 points or 0.33% at 7,760 points
- Wall Street: Dow Jones down 1.73%, S&P 500 down 2.24%, Nasdaq down 3.07%
- Europe: FTSE 100 up 0.32%, CAC 40 down 0.07%, DAX up 0.27%
- Spot gold: up 3.48% at USD3,343.12 per ounce
- Oil prices: Brent up 2.06% to USD66/bbl, US WTI up 1.86% to USD62.47/bbl
- AUD: down 0.04% at 63.69 US cents
- Bitcoin: up 0.98% to USD84,506.39.
The context: US stock indices were dragged lower by an index of semiconductor stocks after Nvidia flagged USD5.5 billion in charges due to the US government limiting exports of its H20 chip to China. Dutch chip-making tools giant ASML also warned that tariffs had led to increased uncertainty about its outlook. Those declines worsened after Powell's comments. He noted that the US economy is still in a solid position, but said larger-than-expected tariffs likely mean higher inflation and slower growth.
What to watch: Local labour force data for March at 11.30am; quarterly reports from BHP, South32, Pilbara Minerals, Challenger and AMP, among others.
