Aussie shares rise as investors shrug off tariff fears
At noon on Thursday the benchmark S&P/ASX200 index was up 49.1 points, or 0.58 per cent, to 8,587.7, while the broader All Ordinaries had gained 47 points, or 0.54 per cent, to 8,824.9.
Overnight, minutes from the June meeting of the Federal Reserve's rate-setting committee showed most participants judged a rate cut would be appropriate this year, with a couple favouring one as soon as this month.
Barclays said it remained of the view the Fed would trim rates in December, while Citi analysts projected the US central bank would cut in September.
Also overnight, German Chancellor Friedrich Merz said he was "cautiously optimistic" the European Union could reach a trade deal with the US in coming days.
US stocks rose, with the S&P500 climbing 0.6 per cent and the tech-heavy Nasdaq rising 0.9 per cent, and that momentum has carried over to the Australian session.
Seven of the ASX's 11 sectors were higher at midday with energy, health care, technology and utilities lower.
The property sector was the biggest mover, climbing 1.2 per cent, with Charter Hall adding 1.7 per cent and GPT rising 1.6 per cent.
In the heavyweight mining sector, goldminers were bouncing back from Wednesday's sharp selloff as the precious metal traded for $US3,330 an ounce, up $30 from a day before.
Evolution rose 3.2 per cent, Newmont added 3.1 per cent and West African Resources had climbed 4.2 per cent.
As for the iron ore giants, Fortescue was up 1.5 per cent, while BHP and Rio Tinto had both added 0.9 per cent.
In the financial sector, all of the big four banks were higher.
ANZ and Westpac were both up 1.0 per cent, NAB had climbed 1.4 per cent and CBA had added 1.1 per cent.
In health care, Imrico Medical Systems had sunk 18.3 per cent to a three-month low of $1.27 after the cardiac catheter company indicated regulatory approval for one of its products in the US had fallen behind schedule.
The Australian dollar meanwhile was trading for 65.48 US cents, from 65.20 US cents at midday on Wednesday.
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Perth Now
an hour ago
- Perth Now
US bombshell hits PM's China trip
One of Donald Trump's key defence advisers and the man in charge of the AUKUS review has doubled down on Australia's need to increase defence spending, following reports that Australian defence officials have been urged to commit to supporting the United States if China were to invade Taiwan. US Undersecretary of Defence Elbridge Colby said the US' position of 'achieving peace through strength' was 'abundantly and consistently clear,' and would include urging allies to 'step up their defence spending and other efforts related to our collective defence'. This follows Mr Hegseth's call for Australia to boost immediately boost investment from 2 per cent to 3.5 per cent of GDP, about $40bn, significantly beyond Labor's current commitment to reach 2.33 per cent by 2033. While Mr Colby, a noted China hawk, didn't name countries who are lagging on their funding commitments, he said the US would 'not be deterred'. Eldridge Colby's call comes as Australia has resisted calls from the US to increase spending. NewsWire/ Nikki Short Credit: News Corp Australia 'Of course, some among our allies might not welcome frank conversations. But many, now led by NATO after the historic Hague Summit, are seeing the urgent need to step up and are doing so,' he wrote on X. 'President Trump has shown the approach and the formula – and we will not be deterred from advancing his agenda.' His comments follow reports in the Financial Times on Saturday that Mr Colby has been pushing Japanese and Australian defence officials on their response if China invaded Taiwan, an outcome US Defence Secretary Pete Hegseth said was an 'imminent' threat. Quoting one US official, they told the UK publication that while the US does 'not seek war,' or to 'dominate China,' the US wants to ensure both it and its allies 'have the military strength to underwrite diplomacy and guarantee peace'. Speaking to the ABC on Sunday, Acting Defence Minister Pat Conroy would not 'engage in hypotheticals' or 'disclose confidential discussions'. 'The sole power to commit Australia to war or to allow our territory to be used for a conflict is the elected government of the day,' he said. 'That is our position. Sovereignty will always be prioritised, and that will continue to be our position.' Defence Industry Minister Pat Conroy addresses the National Press Club of Australia in Canberra. NewsWire / Martin Ollman Credit: News Corp Australia Australia has repeatedly rebuffed calls from the US to boost defence spending, stating that the amount will be decided according to Australia's sovereign needs, which has in-turn put pressure on the alliance, and Anthony Albanese's attempts to secure a tariff exemption. While politically, the Prime Minister is under increasing pressure to secure a meeting with Mr Trump, the leaders are set to have a face-to-face talk in early September during the Quad meeting in India. This will also be the first in-person meeting between Mr Albanese and Mr Trump since the President's re-election in November, however the leaders have shared three phone calls. Echoing comments made by Anthony Albanese, who is currently on a six-day diplomatic mission in China, Foreign Minister Penny Wong last week said that said Australia's security should not be defined 'simply in the terms of what China or the United States is doing in the regions'. 'Instead Australia will 'take our own approach to our relationships, to the rules and to this region that we share,' she said while attending the ASEAN Summit in Malaysia.
News.com.au
an hour ago
- News.com.au
Senior US defence official Elbridge Colby says US ‘will not be deterred' from its call for allied countries to boost defence spending
One of Donald Trump's key defence advisers and the man in charge of the AUKUS review has doubled down on Australia's need to increase defence spending, following reports that Australian defence officials have been urged to commit to supporting the United States if China were to invade Taiwan. US Undersecretary of Defence Elbridge Colby said the US' position of 'achieving peace through strength' was 'abundantly and consistently clear,' and would include urging allies to 'step up their defence spending and other efforts related to our collective defence'. This follows Mr Hegseth's call for Australia to boost immediately boost investment from 2 per cent to 3.5 per cent of GDP, about $40bn, significantly beyond Labor's current commitment to reach 2.33 per cent by 2033. While Mr Colby, a noted China hawk, didn't name countries who are lagging on their funding commitments, he said the US would 'not be deterred'. 'Of course, some among our allies might not welcome frank conversations. But many, now led by NATO after the historic Hague Summit, are seeing the urgent need to step up and are doing so,' he wrote on X. 'President Trump has shown the approach and the formula – and we will not be deterred from advancing his agenda.' His comments follow reports in the Financial Times on Saturday that Mr Colby has been pushing Japanese and Australian defence officials on their response if China invaded Taiwan, an outcome US Defence Secretary Pete Hegseth said was an 'imminent' threat. Quoting one US official, they told the UK publication that while the US does 'not seek war,' or to 'dominate China,' the US wants to ensure both it and its allies 'have the military strength to underwrite diplomacy and guarantee peace'. Speaking to the ABC on Sunday, Acting Defence Minister Pat Conroy would not 'engage in hypotheticals' or 'disclose confidential discussions'. 'The sole power to commit Australia to war or to allow our territory to be used for a conflict is the elected government of the day,' he said. 'That is our position. Sovereignty will always be prioritised, and that will continue to be our position.' Australia has repeatedly rebuffed calls from the US to boost defence spending, stating that the amount will be decided according to Australia's sovereign needs, which has in-turn put pressure on the alliance, and Anthony Albanese's attempts to secure a tariff exemption. While politically, the Prime Minister is under increasing pressure to secure a meeting with Mr Trump, the leaders are set to have a face-to-face talk in early September during the Quad meeting in India. This will also be the first in-person meeting between Mr Albanese and Mr Trump since the President's re-election in November, however the leaders have shared three phone calls. Echoing comments made by Anthony Albanese, who is currently on a six-day diplomatic mission in China, Foreign Minister Penny Wong last week said that said Australia's security should not be defined 'simply in the terms of what China or the United States is doing in the regions'. 'Instead Australia will 'take our own approach to our relationships, to the rules and to this region that we share,' she said while attending the ASEAN Summit in Malaysia.
The Australian
2 hours ago
- The Australian
Trump's dealmaker name on the line in high stakes tariff talks
President Donald Trump set out early in his second term to fulfill a decades-long desire of reshaping US trade with the world, but the main outcomes so far have been discord and uncertainty. The real estate tycoon, who has staked his reputation on being a consummate dealmaker, embarked on an aggressive strategy of punitive tariffs that his administration predicted could bring "90 deals in 90 days." The score so far? Two. Three if you count a temporary de-escalation agreement with China. The 90-day deadline was due on July 9, with dozens of economies including the European Union, India and Japan facing tariff hikes without a deal. But days before it arrived, Trump issued a delay to August 1. It was his second extension since unveiling the tariffs in April -- reigniting the "TACO Theory" that has gained traction among some Wall Street traders. The acronym coined by a Financial Times writer stands for "Trump Always Chickens Out," highlighting the president's inclination to roll back policies if markets turn sour. Treasury Secretary Scott Bessent, part of Trump's multi-leader trade team, has reportedly been a key advocate for the pauses. But the label has irked Trump and he insisted Tuesday that the deadline had always been in August. "I didn't make a change. A clarification, maybe," Trump said at a cabinet meeting. This week, he published more than 20 letters dictating tariff rates to world leaders including in Japan, South Korea and Indonesia. "We invite you to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far," Trump wrote. He also issued letters to the EU, Canada, Mexico and Brazil -- although Brazil was not previously targeted by the steeper "reciprocal" tariffs and Canada and Mexico face a separate tariff regime. The documents "appear to be Trump's way of combatting the TACO label," said Inu Manak, a fellow for trade policy at the Council on Foreign Relations. "He wants to show that he's not just kicking the can down the road on the deadline, but that he means business," she told AFP. "He's likely frustrated that there isn't a parade of deals coming in." - 'Politically complicated' - "The shift in his rhetoric from 'there is no cost -- the foreigners pay the tariffs' to 'there is a short term cost, but there will be a long term gain' has put him in a more politically complicated position," said William Reinsch, senior adviser at the Center for Strategic and International Studies. Trump has repeatedly claimed that foreign countries foot the bill for tariffs, although the reality is more complicated with US companies generally paying them. "In the public's mind, the tariffs are the pain, and the agreements will be the gain," said Reinsch, a former US commerce official. He warned that without trade agreements, Americans could conclude Trump's strategy was flawed and deem his tactics a failure. While the 90-deal goal was probably unrealistic, Reinsch said, "it's clear that three (UK, China, Vietnam) with only one actual text made public (UK) is too small." - Deflecting attention - Meanwhile, Trump has announced a 50 percent levy on copper imports starting August 1. Commerce Secretary Howard Lutnick said officials would also conclude investigations into semiconductors and pharmaceuticals -- which could lead to tariffs -- at month-end. "That timing is not coincidental -- it lines up with the new deadline of August 1, adding more pressure and deflecting attention from any lack of deals that get made in that time frame," Manak said. Analysts believe Trump's supporters will likely not pay much attention to trade talks unless the tariffs fuel inflation. "Trade policy is not top-of-mind for the average voter," said Emily Benson, head of strategy at Minerva Technology Futures. She expects the Trump administration's focus on boosting US manufacturing and reinvigorating the defense industrial base means it could be willing to bear some political heat to achieve those objectives. But it's a delicate balance. Voters will likely pay more attention if Trump follows through on his August tariff threats, Manak said. "And we could see a negative market reaction as well, which would not go unnoticed." bys/des
