ASX snaps six-day losing streak as miners, tech stocks surge, strong company earnings defy Trump’s ‘economic D-Day’
Australia’s share market snapped a six day losing streak, despite a surge in oil prices and a threat from US President Donald Trump of the “most crushing economic operation ever”.
The ASX finished 30.00 points higher at 9083.80 on Thursday, while the broader All Ordinaries recorded an increase of 43.30 points, or 0.47 per cent, to 9298.50, due to stronger than expected earning results.
Five sectors rose during a steady day, while six finished with losses.
Leading the gains were soaring material stocks due to rising commodity prices, while technology shares leapt more than 2.50 per cent and the healthcare sector continued its recent run higher.
BHP shares climbed 3.20 per cent to $65.75, Rio Tinto jumped 1.81 per cent to $173.04.
But it was the gold miners outperformed on the latest threat from US President Donald Trump, which led to global markets expecting higher inflation and rising interest rates.
President Trump threatened “tremendous economic consequences” and an “economic D-Day” on Iran, as the war in the Middle East escalates.
Northern Star Resources leapt 6.21 per cent to $23.94, Evolution Mining surged 10.16 per cent to $15.07 and Newmont firmed 6.94 per cent $177.10.
The price of gold stayed strong at $4493.89 despite suffering a 0.53 per cent loss.
Global X investment strategist Billy Leung said the materials spike could be attributed to the growing uncertainty in the US with the US treasuries decision to start investing in long dated bonds.
“People are getting more angsty about the long-term outlook of the US,” he said.
“Because of the US Treasury action, it had some inflation expectations, and that’s why gold was actually up.
“There was also an element that there is a losing credibility with the US which gives gold a more standing reason to be more useful as a store value.”
The banks experienced another hard day of losses with the big four all reporting losses of one per cent or greater.
5News aggregated this summary from the outlet’s public feed. The full article, with all the context, is on www.perthnow.com.au — the content belongs to PerthNow.
