Australia shares capped on US-China tension
Australia’s benchmark share index rose on Thursday, led by telecom stocks. However, gains were capped due to rising US-China tensions
The S&P/ASX 200 index rose 0.4%, while the benchmark fell 0.4% on Wednesday.
Material stocks were 1.1% lower, as shares of Rio Tinto Limited and BHP Group PLC (SA) group dropped 0.5% and 0.6%.
Energy stocks climbed 0.9% on the back of oil futures gaining 1% on Wednesday. Energy stocks were boosted by a drawdown in US crude stockpiles, while shares of Woodside Petroleum and Santos Ltd rose 1.1% and 1.4%,
US-China trade tensions
Australian stock gains were capped on Thursday as rising concerns over US-China tensions continue.
It comes after US president Donald Trump said he would keep tariffs on Chinese imports. Beijing announced it would retaliate if Washington hikes tariffs planned on Friday.
Investors remain cautious to see if a deal can be reached and avoid any escalation.
President Donald Trump said on Wednesday that China "broke the deal" it had reached in trade talks. The US Trade Representative's office announced that tariffs on $200 billion worth of Chinese goods would increase to 25% from 10% at 12:01 a.m. (0401) GMT on Friday.
‘I just announced that we’ll increase tariffs on China and we won’t back down until China stops cheating our workers and stealing our jobs, and that’s what’s going to happen, otherwise we don’t have to do business with them,’ Trump told a crowd at a rally in Florida on Wednesday.
Telecom shares
Meanwhile, shares of TPG Telecom Limited rose 2.3%, while Telecom giant, Telstra Corp Ltd. also posted a 2.4% gain. TPG Telecom recovered some of its losses from the previous session, when shares took a hit after Australia's anti-trust regulator blocked a A$15 billion ($11 billion) merger between TPG Telecom and Vodafone's Australian joint venture on competition grounds on Wednesday.
New Zealand's benchmark S&P/NZX 50 index was little changed rising 0.04 % or 3.99 points to 10,067.04.
It comes after The Reserve Bank of New Zealand (RBNZ) lowered the official cash rate to an all-time trough of 1.50% on Wednesday. The central bank governor cited a slowing in global economic growth as the reason the bank cut its official cash rate.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
