Oil stocks rally, gold miners tumble on progressing US-China talks
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The news: Energy stocks rallied while gold stocks slumped by the afternoon, as investors digested news reports of “substantial progress” in trade talks between the US and China.
The numbers: The energy sector (+2.62%) was by far the best performing by 12:51pm AEST, with heavyweights Woodside Energy (+2.45%), Santos (+3.55%) and Ampol (+2.22%) leading gains. Beach Energy (+4.53%) and Karoon Energy (+4.38%) also made substantial gains.
West Texas crude oil was up 0.31% while Brent crude gained 0.3% as the progress of US-China trade talks lifted market sentiment, according to Reuters.
Meanwhile, gold was down 1.96% as the US dollar strengthened on the talks. Six out of the 10 bottom performing ASX 200 stocks were gold stocks. This included Genesis Minerals (-5.39%), Ramelius Resources (-4.88%), Vault Minerals (-4.79%), Spartan Resources (-4.28%), Evolution Mining (-4.35%) and Bellevue Gold (-3.59%).
The context: Over the weekend, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met in Geneva with China’s Vice Premier He Lifeng. The two countries looked to reach an agreement on escalating trade tariffs.
