ASX 200 jumps on latest Trump tariff announcement

Major energy and mining stocks drove the ASX 200 higher, as the United States talks peace with China.

The Australian sharemarket soared on Wednesday as markets regained confidence US President Donald Trump’s tariff policy could have a less severe impact on global growth.

The benchmark ASX 200 had its best day in two weeks with the index gaining 103.80 points or 1.33 per cent higher to 7,920.5.

The broader All Ordinaries jumped 111.50 points or 1.39 per cent to 8,125.20.

The Australian dollar rose 0.61 per cent and is now buying 64.15 US cents.

Overnight on Wednesday, US treasury secretary Scott Bessent called tariffs on China unsustainable and expects the situation between the two largest economies to de-escalate.

Combined these comments saw global shares rally, gold prices fall and US 10-year bond yields slide, with investors becoming more confident about the global trade war.

The ASX soared on the back of tariff talks. Photo: NewsWire/ Gaye Gerard

Capital.com senior financial market analyst Kyle Rodda the market recorded a broadbased gain, led by energy stocks, with every sector trading higher.

“Broadly speaking, if you look on the ASX 200 on the areas that will benefit the most from a back down in tariffs, it’s those global growth proxies,” he said.

“So energy is significantly up, mining companies, notwithstanding the gold miners that got smashed today, are up, with those broadly defined as cyclic benefiting from the positive trade developments.”

Energy and mining stocks were the main beneficiaries of these signs that global growth could pick up with the price of crude oil and iron ore going up.

The price of iron ore is up 0.2 per cent to $US99.95 per tonne, which helped lift BHP s3.31 per cent to $37.72, while Rio Tinto jumped 1.98 per cent to $113.83 and Fortescue Metals closed 2.74 per cent higher to $15.36.

Also helping to drive the market higher was the Uranium players.

Gold miners were the only blip on the local market. Picture: NewsWire / Max Mason-Hubers

Led by Paladin Energy, the Uraninium miner leapt more than 24.6 per cent to $4.96 after announcing a record quarterly output.

[Paladin] has been experiencing some disruptions over the last couple of years, mostly weather related, and the stock was particularly well shorted, so to speak,” he said.

“So they have a short squeeze in a lot of those uranium players today as well.”

Deep Yellow and Boss Energy also had strong days, up 11.98 and 9.66 per cent respectively.

On a strong day for the markets, 10 of the 11 sectors ended higher, led by energy, industrials and the IT sector.

Commonwealth Bank dropped 2.52 per cent to $163.77 after soaring over 4 per cent to a record high during Tuesday’s trading.

Westpac shares jumped 1.67 per cent to $31.70, ANZ grew 1.94 per cent to $28.40 while NAB soared 3.16 per cent to $34.90.

Despite an overall positive day, the only dark spot was the gold miners which collectively plunged 9 per cent following the price of the underlying commodity.

The price of gold fell from a record high of $US3,500 to around $3,300 during Wednesday’s trading.

Originally published as ASX 200 jumps on latest Trump tariff announcement