Australian investors will be leaping for joy on Thursday, with the sharemarket set to soar after United States President Donald Trump backed down on his tariffs threats.
At 9:37 am AEST (11.37 pm GMT Wednesday) the S&P/ASX 200 index June share price index futures contract was trading 490 points (6.619%) higher at 7,404.
This would mark a remarkable turnaround on the Australian Securities Exchange’s (ASX) main barometer which had dropped 1.8% to 7,375.0 points on Wednesday as the formal start of tariffs increased pressure on global trade.
Trump on Wednesday declared an immediate 90-day tariff pause for many countries, easing worries about a global trade war and heralding recessions around the world that decimated equity prices.
In response the Dow Jones Industrial Average rallied 7.9%, and the S&P 500 beat it with a 9.5% surge. However, the biggest winners were in the technology space as the Nasdaq Composite rocketed 12.2% higher.
Companies expected to benefit most from the presidential change of heart surged with Apple and NVIDIA rising more than 15%, Walmart adding 10% and Tesla rocketing more than 22%.
“Hang on to your hats, it’s a hell of a ride,” Frais Capital founder Siobhan Blewitt told ABC Radio Melbourne.
“This is the pivotal moment we’ve been waiting for," Bolvin Wealth Management Group President Gina Bolvin was quoted by Reuters as saying about the tariff news.
In market-sensitive news and events today, Reserve Bank of Australia Governor Michele Bullock delivers a speech, Netwealth Group (ASX: NWL) has issued a quarterly business update and Santos (STO.ASX) will hold its annual general meeting, according to CommSec.
On the fixed interest markets, Australian Treasury bond yields diverged along the curve. The 10-year rate fell 0.92% to 4.313% and the two-year yield rose 2.62% to 3.367%.
