ASX 200 afternoon report: 4 February 2025
The ASX 200 records slight gains as easing tariffs relieve market tension, with banking, mining, and tech stocks rallying post-Palantir earnings.
The ASX 200 trades 16 points (0.19%) higher at 8395 as of 2.45pm AEDT.
ASX 200 steadies as tariff delays offer relief
The ASX 200 has stabilised today after United States (US) President Donald Trump agreed to postpone tariffs on Mexico and Canada for a month. This decision came after both countries agreed to reinforce their borders to help curb the flow of illegal drugs.
Investors await critical US-China trade deal
Despite this, gains for the ASX 200 have been modest compared to yesterday's heavy sell-off. Traders are anxiously awaiting news of a potential US deal with China before the impending deadline on Wednesday, 5 February at 4.00pm AEDT. If no deal is reached, new 10% tariffs on Chinese goods will be triggered.
If an agreement is made, the ASX 200 and the AUD/USD exchange rate are likely to extend their rebound from yesterday's lows. Without a deal, yesterday's volatility might soon return.
ASX 200 stocks
The heavyweight banking and mining sectors have been supported by dip buyers taking advantage of yesterday’s knockdown in prices.
Mining sector
- Rio Tinto surged 2.15% to $117.38
- Mineral Resources gained 1.96% to $33.73
- Fortescue rose 1.67% to $18.59
- BHP Group climbed 0.97% to $39.63
Banking sector
- Macquarie gained 0.97% to $239.35
- Westpac added 0.57% to $33.35
- Australia and New Zealand Banking Group (ANZ) rose 0.60% to $30.38
- National Australia Bank (NAB) added 0.38% to $39.36
- Commonwealth Bank of Australia (CBA) added 0.3% to $158.59
Technology sector
A cracking earnings report from US tech stock Palantir Technologies has boosted local tech stocks.
- Appen added 8.4% to $2.77
- Zip gained 4.17% to $2.37
- Wisetech Global climbed 3.26% to $124.08
- DroneShield rose 2.44% to $0.63
Consumer discretionary sector
After surging 7.13% in January the pullback in the consumer discretionary sector this month has deepened.
- Kogan lost 2.16% to $4.52
- Myer fell 0.85% to $0.88
- Aristocrat Leisure slipped 0.5% to $73.68
- Harvey Norman edged 0.10% lower to $5.10
ASX 200 technical analysis
Technically, the ASX 200 has been trading higher within a bullish trend channel for over 12 months. After rebounding from the lower bound of the trend channel in late December, the ASX 200 last week traded towards the top of the trend channel, now at approximately 8650.
As long as the ASX 200 holds above the support level of 8380 - 8360 on a closing basis, the uptrend remains in place, and the ASX 200 can continue higher towards 8650. However, be aware that a sustained break below 8380 - 8360 would shift the focus towards the bottom of the trend channel, currently at 8070 - 8050.
ASX 200 daily chart
- Source: TradingView. The figures stated are as of 4 February 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.
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