Australian shares rebounded Thursday, driven by gains in technology and energy stocks, although global markets showed mixed signals following a Supreme Court decision impacting former President Trump’s tariffs and ongoing economic data releases. The ASX 200 closed up 0.4% at 8,940 points, recovering from losses the previous day.
The rebound was led by a 1.9% surge in the technology sector, followed by healthcare, up 1.8%, and energy, up 1%. Materials was the only sector to finish in the red, declining 0.4%. Viva Energy led individual company gains, jumping 11.9%, with Magellan Financial Group and Catapult Sports also posting significant increases of 10.5% and 10.3% respectively. Conversely, Monadelphous Group experienced a 4.6% decline, alongside losses for Genesis Minerals and QBE Insurance, down 4.2% and 3.5% respectively.
The Australian dollar edged slightly lower, down 0.3% to 70.43 US cents. This movement occurred as global markets digested a US Supreme Court ruling rejecting former President Trump’s proposed tariffs, a decision that sent ripples through international trade expectations. According to reports, the ruling has contributed to volatility in US futures markets.
Globally, Wall Street experienced a rebound Wednesday, with the Dow Jones Industrial Average rising 0.5% and the S&P 500 gaining 0.8%. The Nasdaq Composite saw a more substantial increase of 1.3%. European markets also largely advanced, with the FTSE rising 0.8%. However, Asian markets presented a more mixed picture, with US futures and Bitcoin both falling following the Supreme Court decision, as reported by CityNews Halifax.
Commodity prices generally increased. Gold rose 0.6% to $US5,165 per ounce, while silver climbed 1.2% to $US84.32 per ounce. Oil prices saw a significant increase, with Brent crude rising 3.3% to $US84.06 per barrel. Iron ore also edged higher, gaining 1.1% to $US100.70 per tonne. Bitcoin, however, experienced a slight decline, falling 1.1% to $US72,550.
China’s economic plans are also influencing global markets. Beijing has signaled a tolerance for a slower growth target of 4.5%-5% for 2026, a slight downgrade from the 5% achieved last year. This adjustment, reported by Reuters, may allow for greater efforts to curb industrial overcapacity and rebalance the economy. Simultaneously, China has asked companies to suspend new refined fuel export contracts, potentially exacerbating fuel supply issues in Asia, according to industry sources.
Elsewhere, Australia and Canada have deepened their ties with a new critical minerals deal, announced by Prime Minister Anthony Albanese and Canadian Prime Minister Mark Carney. The agreement aims to bolster cooperation in securing vital resources for renewable energy and technology sectors, as the global race for these materials intensifies. Carney, addressing the Australian Parliament, emphasized the necessitate for collaboration between middle powers in a world marked by great power rivalry.
The ACCC has also released a report indicating that infrastructure investment at Australia’s four largest airports increased by over 43% in 2024-25, potentially leading to higher airfares as airlines seek to recover costs. The report highlights the need for sensible investment decisions and efficient cost management at these key transportation hubs.
