Market wrap: ASX200 lifts on Wall St rally, iron ore rebound
The benchmark ASX200 jumped 50.6 points, or 0.59 per cent, to close at 8589.2, while the broader All Ordinaries index lifted 48.8 points or 0.56 per cent, to finish at 8826.7.
The heavyweight materials sector led the charge, gaining 1.24 per cent.
Singapore iron ore futures advanced 3 per cent to $US98.95 a tonne in afternoon trade on the back of Wednesday's better-than-expected consumer inflation data out of China.
'This snapped a run of four months of consumer deflation and buoyed hopes that stimulus measures and easing trade risks with the US will boost China-facing stocks by the end of the year,' IG market analyst Tony Sycamore said.
BHP gained 1.19 per cent to $38.30 a share, Rio Tinto climbed nearly 1 per cent to $108.62, Fortescue rose 1.91 per cent to $16.51 and Mineral Resources added 3.66 per cent to $25.51.
Gold miners advanced as the precious metal hit US$3330 an ounce.
Evolution Mining jumped 3.57 per cent to $7.55 while Newmont rose 3.24 per cent to $90.29.
Financials also lifted, with Commonwealth Bank advancing 0.82 per cent to $180.37, Westpac edging up 0.5 per cent to $33.87, NAB climbing 1.12 per cent to $39.74 and ANZ gaining 0.77 per cent to $30.29.
Seven of 11 industry sectors ended in the green, though the healthcare sector continued to sell off, losing another 0.54 per cent following US President Donald Trump's threat this week to impose a 200 per cent tariff on pharmaceutical imports.
CSL retreated 0.53 per cent to $242.41 while Ramsay Healthcare tumbled 3.09 per cent to $37.92.
The market briefly broke through the 8600 barrier in intraday trading, reaching a high mark of 8610 points just before 1pm.
The bourse's gains followed a strong lead from Wall St overnight on Wednesday as confidence grew about a possible rate cut from the US Federal Reserve later in the year.
The Dow Jones added 217 points, or 0.49 per cent, to close at 44,458, while the S&P500 rose 0.61 per cent to 6263.26 and the tech-heavy Nasdaq index surged 0.94 per cent to 20,611.
'The central bank kept interest rates steady at 4.25 per cent to 4.5 per cent, signalling confidence in the economy, even as inflation, while easing, remains stubbornly above its 2 per cent target,' Moomoo market strategist Jessica Amir said.
'The labour market continues to impress, with low unemployment and steady job gains providing a sturdy backbone for growth.
'Yet central bank officials are treading carefully. Global uncertainties, shifting trade dynamics and geopolitical tensions remain firmly on its radar.
'While some officials see room for possible rate cuts later this year if inflation cools further, the consensus is clear: no rushing into decisions.'
In corporate news, medical devices company Imricor Medical Systems slumped 15.1 per cent to $1.32 after updating investors on its regulatory approvals progress in the US.
The top gainer on the ASX200 was Lifestyle Communities, which surged 9.2 per cent to $4.83.
The biggest loser was Domino's Pizza, slumping 4 per cent to $18.03.
The Aussie dollar gained 0.28 per cent to buy US65.5c at the closing bell.
Originally published as Market wrap: ASX200 lifts on Wall St rally and iron ore surge
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
7NEWS
2 hours ago
- 7NEWS
The Issue with Tim Lester: Diplomat Geoff Raby on Anthony Albanese's all-important meeting with Xi Jinping in China
Geoff Raby has no doubt how he would advise Anthony Albanese if he were briefing the Prime Minister in the minutes before this coming week's planned talks with China's President Xi Jinping. 'I'd be telling him that this is a very important moment in Australia-China relations,' Raby said. As Australia's Ambassador in Beijing, Raby counselled prime ministers John Howard, Kevin Rudd and Julia Gillard on the critical relationship with China. In the decade-and-a-half since, China has surged as a military superpower, while two-way trade has all but trebled — built on $100 billion a year of Australian iron ore exports. Before leaving Sydney, the Prime Minister acknowledged that — on the list of our trading partners — China is bigger than the next three combined. 'The relationship in China means jobs in Australia. It's as simple as that,' Albanese said. China is the export market we can't live without, at the same time as our longtime security guarantor, the United States, regards China as its greatest military rival. After decades of experience in China diplomacy — stretching back to a stint in Australia's Beijing Embassy in the 1980s — Geoff Raby acknowledges China 'needs to be watched' but says the common assumption that it's now the world's great military threat, is wrong. 'My own view is that China is not a threat to Australia's security as such. China is much more interested in its own stability (and) economic performance,' Raby said. More important to Raby is the fact China has land borders with 14 countries and territorial issues with Xinjiang, Tibet, Taiwan and Hong Kong that loom large in Beijing's calculations. Add in a dependence on foreign energy and natural resources, and China is a 'constrained superpower'. 'This is all part of us having to recognise an emerging new power and be smart in how we deal with it,' Raby said. But one feature of Australia's recent security policy has been anything but 'smart', according to Raby. AUKUS, the giant nuclear submarine pact with the United States and the United Kingdom is set to cost hundreds of billions of dollars over coming decades. Raby called it 'a foreign policy failure for Australia'. 'We have had decades of trying to integrate ourselves into Asia … That has been the cornerstone of our foreign policy for 40-odd years. AUKUS really tears that up,' he said. As Prime Minister Albanese visits China, AUKUS approaches a crossroad in Washington. The Pentagon is reassessing the security pact to see if it fits with President Donald Trump's 'America First' agenda. As well, the Trump Administration's demand that the Albanese government sharply increase military spending has stoked doubts in Australia about the commitment of the United States to our defence. Raby shares that concern. 'Having put this big bet on the US, can we rely on them to be there whenever we need them? Serious defence analysts question that these days,' he said. Raby argued more of Australia's security ought to rest on regional relationships and less on our AUKUS partners. 'Independent foreign policy is essential. We have to be able to make these decisions for ourselves,' he said. So where does that leave Anthony Albanese in his Beijing meeting with Xi Jinping? Raby said the Prime Minister must raise human rights issues and consular cases involving imprisoned Australians. As well he needs from President Xi 'a very clear understanding that China sees a future in a close economic relationship with Australia'. The veteran diplomat also cautioned that the 'personal dynamic is extremely important'. It may be even more so at this, the fourth leaders' meeting between Xi and Albanese. Our Prime Minister has yet to clinch his first Trump meeting. Relations with the U.S. President appear cool. Any sign of warmth in the talks with Xi is sure to stand out. For more from Tim Lester and his interview with Geoff Raby, you can listen to The Issue in the player below or watch their full conversation in the video above.
Perth Now
2 hours ago
- Perth Now
Brand called out for ‘deceptive' move
Shoppers have voiced outrage after a popular e-commerce retailer advertised AI-generated models and product images on its platform, labelling the move 'deceptive'. An Australian woman called out Atoir, a Melbourne-based label, for using AI-generated images of a model and clothing, available for purchase on The Iconic. 'Saw this on The Iconic,' she wrote on Reddit. 'The brand ATOIR is using AI models for their clothing. Feels so deceptive.' The Melbourne fashion brand created a model using AI. The Iconic Credit: Supplied The dress in this image isn't real either. The Iconic Credit: Supplied The website features two images of a brunette woman wearing a white dress, taken from the front and back. At the very bottom of the item's product description, the brand said the model's measurements 'represents a size S/8 and is standing at 5'10' but disclosed neither the clothing, nor the model, were real. 'Please note that this eCommerce imagery has been crated (sic) using artificial intelligence technology and does not feature a real model,' the product description read. 'These AI generated visuals are designed to represent our products accurately and creatively.' The same AI model displays other Atoir items on the website without any mention of AI-generated imagery. The Iconic disclosed the brand was using AI-generated models in some product descriptions but failed to mention it in others. Reddit Credit: Supplied Online, Australian customers voiced their frustration with the AI-generated models, arguing it did not accurately represent the item they wanted to buy. '(A) $400 dress and you can only see an image generated version of it before you buy it,' a comment read. Others argued the AI-generated image failed to represent the fit of the clothing on a human body and other angles of the clothing. 'AI cannot replicate the way a garment sits on the body, or the way different types of fabric drape,' a person wrote. 'They might as well just take a flat lay photo of the garment, that would actually be more useful.' Another said the move was 'so wildly unappealing' and discouraged them from making a purchase. 'It's just a realistic looking line drawing at this point,' they wrote. 'I can't say I'm prepared to shell out hundreds of dollars online when I don't even get to see an actual garment.' Many other products featured the same AI-generated model. The Iconic Credit: Supplied Many shoppers voiced their concern with the AI-generated images. The Iconic Credit: Supplied Interlunar Media director Krishna Chandak said AI visuals could 'often miss the mark' if used for advertising retail, skincare and fitness products compared with 'commoditised sectors' and could 'definitely affect consumer trust and brand credibility'. 'In categories like skincare, fashion, or wellness, where authenticity and emotional connection matter, AI visuals often miss the mark,' he told NewsWire. He said 'real content consistently outperforms' AI-generated content, which may '(raise) questions around transparency and ethics'. 'Whether it's user-generated content, branded shoots, or genuine storytelling, the return on investment is almost always stronger with authentic visuals,' he said. Retail experts warn brands about relying on AI-generated images, as they could dissuade shoppers. The Iconic Credit: Supplied Experts suggest sticking to 'traditional' methods of creating product images, including real photographers and models. The Iconic Credit: Supplied The Ad Firm chief executive Kevin Heimlich said retailers using AI were walking on an 'ethical tightrope' that could discourage shoppers from trusting a brand. He said while AI may 'create a technically perfect image', it may also 'lack the soul and relatability that genuinely resonate with a target audience and encourage them to convert'. 'AI can whip up these incredibly slick, almost perfect images. They look amazing, truly aspirational,' he told NewsWire. 'If that image does not exactly match the real item a customer receives, you have a problem.'Mr Heimlich said shoppers may be disappointed when the item arrived at their doorstep. 'When a customer opens their package and sees something that does not quite align with what they saw online, it is a direct path to disappointment, frustration, and often, a return,' he said. Shoppers may lose trust in a brand if it relies on AI-generated images, retail experts say. NewsWire / Luis Enrique Ascui Credit: News Corp Australia Mr Heimlich said there was a risk of 'breeding distrust' if retailers relied on AI-generated product images, leading customers to wonder if the brand is 'intentionally trying to mislead them'. 'Such damage to a brand's reputation and consumer trust can take a considerable amount of time to repair, and it undoubtedly impacts future sales,' he said. Mr Heimlich urged retailers to consider relying on traditional photography and models to negate the lack of 'emotional connection and storytelling' that came with AJ-generated imagery. 'A skilled photographer, or a model who embodies the essence of your brand, does so much more than show the product,' he told NewsWire. 'AI, in its current form, often struggles to replicate that nuanced human artistry and emotional depth.' The Iconic and Atoir did not immediately respond to NewsWire's questions.
News.com.au
3 hours ago
- News.com.au
Trump threatens Canada with higher tariff, mulls further global levies
Canada will face a 35 percent tariff on exports to the United States starting August 1, President Donald Trump said in a late-night letter to Prime Minister Mark Carney that upends negotiations between the close allies. The notice was the latest of more than 20 such letters Trump has issued since Monday as he continues to widen a global trade war, adding in an interview that countries which have yet to receive a letter from him would see a 15 percent or 20 percent levy. Canada's 35 percent tariff marks a step up from an existing 25 percent level, but products complying with the United States-Mexico-Canada Agreement (USMCA) are expected to remain exempt, a Trump administration official told AFP. Canadian energy resources are anticipated to still face a lower levy, the official said, while noting that Trump has yet to make final decisions on the matter. Trump told reporters Friday that Ottawa reached out following the release of his letter: "I think it was fairly well received. It is what we need. So we'll see what happens." Canada and the United States have been locked in trade negotiations in hopes of reaching a deal by July 21, but Trump's latest threat appeared to have shifted that deadline. Both Canada and Mexico are trying to find ways to satisfy Trump so the USMCA free trade deal uniting the three countries can be put back on track. "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1," Carney posted Thursday night on X. The USMCA replaced the previous NAFTA accord in July 2020, after Trump successfully pushed for a renegotiation during his first term in office. It was due to be reviewed by July next year, but Trump has thrown the process into disarray by launching trade wars after he returned to office in January. Canadian and Mexican products were swiftly hit by 25 percent US tariffs this year, with a lower rate for Canadian energy. Trump targeted both North American neighbors saying they did not do enough on illegal immigration and the flow of illicit drugs -- particularly fentanyl -- across borders. Canada contributes less than one percent of the drug to the illicit US supply, according to Canadian and US government data. Trump eventually announced exemptions for goods entering his country under the USMCA, covering a large range of products. - Reciprocity - Thursday's letter came despite what had been warming relations between Trump and Carney, who has faced the brash Republican's regular musings that Canada should become the 51st US state. The Canadian leader visited the White House on May 6 and had a cordial Oval Office meeting with Trump. They met again at the G7 summit last month in Canada, where leaders pushed Trump to back away from his punishing trade war. Canada also agreed to rescind taxes impacting US tech firms that had earlier prompted Trump to retaliate by calling off trade talks. Separately, Trump announced in an interview with NBC that he was thinking of slapping blanket tariffs of 15-20 percent on countries that had not yet received his letters. The letters announced tariff rates on Brazil of as much as 50 percent, to kick in on August 1 unless better terms can be found before then. Trump told NBC that the letter to the 27-country European Union, a major US trading partner, would be sent "today or tomorrow (Friday)." Brazilian President Luiz Inacio Lula da Silva said Thursday that he is willing to negotiate with Washington after Trump said he would hit South America's biggest economy with his tough tariff. He however reiterated that the Brazilian government is evaluating reciprocity measures. In his letter to Lula, Trump criticized the treatment of his right-wing ally Jair Bolsonaro, the former Brazilian president.
