Australian shares edge higher as US and China agree to trade talks
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More news: The Australian sharemarket is slightly higher in early trading, despite overnight losses on Wall Street, after the US and China said representatives would meet later this week in Geneva to start trade talks.
The benchmark S&P/ASX 200 index was up 4.70 points or 0.06% to 8,156.10 after the first half hour of trade, despite futures earlier pointing to a weak open. Most of the gains were concentrated in the heavyweight financials, materials and energy sectors. Top miners BHP Rio Tinto and Fortescue were up 1% each, while energy majors Woodside and Santos also bumped up on the back of a rebound in crude oil prices.
Westpac was the only one among the Big Four banks to be trading lower, with NAB jumping nearly 4% after reporting better-than-expected first-half results.
Earlier, all three major US stock indices finished lower after US President Donald Trump appeared to walk back on promises that trade deals are on the horizon. However, US stock futures are trading higher in after hours following confirmation of trade talks with China.
Australian shares to track Wall Street lower amid tariff uncertainty
The news: The Australian sharemarket is set to start lower, tracking losses on Wall Street for a second straight session as comments from US President Donald Trump provided little clarity on the timeline for any trade deals.
The numbers: Updated at 7.25am AEDT:
- ASX futures: down 31 points or 0.38% at 8,138 points
- Wall Street: Dow Jones down 0.95%, S&P 500 down 0.77%, Nasdaq down 0.87%
- Europe: FTSE 100 up 0.01%, CAC 40 down 0.40%, DAX down 0.41%
- Spot gold: down 0.01% at USD3,431.06 per ounce
- Oil prices: Brent up 3.01% to USD62.04/bbl, US WTI up 3.43% to USD59.09/bbl
- AUD: down 0.02% at 64.93 US cents
- Bitcoin: down 0.26% to USD94,580.02.
The context: All three major US stock indices finished lower after Trump appeared to walk back on promises that trade deals are on the horizon, saying he and top administration officials will review potential deals over the next two weeks to decide which ones to accept. Meanwhile, US Commerce Department data showed businesses boosted imports of goods in March ahead of the tariff announcements, pushing the country's trade deficit to a record high. Investors are also cagey ahead of a two-day Federal Reserve meeting with the central bank widely expected to keep interest rates unchanged.
What to watch: National Australia Bank half-year results; TPG Telecom will hold its AGM starting 10.00am AEST.
