‘Erratic policy’: ASX soars despite Trump confusion

The ASX 200 continues its relief rally on Monday following the latest back down from US President Donald Trump.

The Australian sharemarket soared on Monday on the back of the big banks and miners, despite mixed messages coming out from the White House and from Mr Trump himself over tariff plans.

The benchmark ASX 200 index gained 102.10 points or 1.34 per cent to start the week at 7,748.60 points.

The broader All Ordinaries also finished significantly higher, up 106.00 points or 1.35 per cent to 7,959.70.

The Australian dollar jumped and is now buying 63.31 US cents.

On an overall strong day for the market, ten of the 11 sectors finished in the green, led by information technology, material, RESTS and healthcare stocks.

Only consumer staples shares traded lower on Monday.

ASX 200 jumped during Monday’s trading on the back of Trump’s latest tariff backdown. Picture: NewsWire / Damian Shaw

Today’s gains follow a wild last week on the market.

Following the Trump administrations announcement of blanket global tariffs, shares sold of more than $115bn on Monday and another $50bn on the opening on Wednesday.

Shares later surged on the back of Mr Trump removing tariffs on 75 countries. As it stands Australia still has a 10 per cent tariff on all goods.

It was a strong day for the major miners with BHP closed 2.7 per cent higher to $36.37, Fortescue rose 0.9 per cent to $15.20 and Rio added 1.4 per cent to $110.85.

While the tech front was led by WiseTech which jumped 3.08 per cent to $86.74 and TechnologyOne which rose 2.81 per cent to $28.50.

All four of the big banks closed higher during Monday’s trading, although they still dragged the index. CBA added 1.7 per cent to $157.29, Westpac rose 1.6 per cent to $30.51, ANZ was 1.7 per cent stronger to $27.42 and NAB gained 0.9 per cent to $33.55.

Australian shares and US futures rose after the Trump administration overnight on Saturday published a list of goods that could be excluded from the tariffs, which saw the likes of Apple and Nvidia shares jump.

Capital.com senior financial market analyst Kyle Rodda said the Australian market started the week off strongly, even though the market lacks clarity on trade policy.

In a strong day for the markets ten of the 11 sectors finished in the green. Picture: Newswire / Gaye Gerard

“Market sentiment has improved following the release of a series of tariff exceptions by the US – explicitly called so by the White House but subsequently denied by the President on Truth Social – for a series of tech products, including semiconductors,” he said.

“Whether these products will be subject to a tariff at all is unclear, with reports ranging from total exception to a concessionary rate covered by the fentanyl tariffs or even a totally new ‘bucket’ as President Trump described it”.

Despite the confusion, global markets are now factoring in a smaller impact from tariffs and a higher chance the Trump administration will continue to water them down further.

“The markets are pricing in a weaker US economy – and subsequent interest rate cuts from the US Federal Reserve,” Mr Rodda said.

“The second is structural in nature and arguably more important.

“The Trump administration’s erratic policy making and the stresses it is placing on the global financial system is seeing investors offload US assets and creating a dynamic where trade surplus nations look to park reserves in non-Dollar denominated assets.”

In company news, Neuren Pharmaceuticals shares soared on progress for a new drug trial. In an announcement to the ASX the company said it is on track for a clinical trial of a new drug following a productive meeting with the US regulator.

Shares were trading 20.78 per cent higher at $11.10.

Originally published as ‘Erratic policy’: ASX soars despite Trump confusion