Australia Market climbs after US suspends tariffs on Mexican goods

The Australian equity market were higher on Tuesday, 11 June 2019, after returning from a holiday, thanks to gains on global peers yesterday after the United States dropped plans to impose tariffs on Mexican goods. ASX sectors were mostly higher, with materials, energy, information technology, financials, realty, and consumer staples issues being notable gainers. Around afternoon trade, the benchmark S&P/ASX200 index inclined 85.71 points, or 1.33%, at 6,529.60 points, while the broader All Ordinaries rose 84.49 points, or 1.3%, at 6,609.70. The Australian equity market closed on Monday due to Queen's Birthday holiday.

The market mood was brightened on tracking positive close of US market overnight after President Donald Trump suspended plans to impose tariffs on Mexican goods after the countries struck a deal on immigration. The Dow Jones Industrial Average rose 78.74 points, or 0.3%, higher at 26,062.68. The S&P 500 gained 0.5% at 2,886.73. The Nasdaq Composite rose 1.1% to 7,823.17.

Market participants are awaiting for a possible meeting between Trump and Xi Jinping at the G20 summit in Japan this month. The US President Donald Trump said Monday that he expects to meet with Chinese President Xi Jinping at the Group of 20 summit at the June 28-29 summit in Osaka, Japan although China is yet to confirm any such meeting. That may have given investors some cause for optimism in the dispute between Washington and Beijing, though Trump noted that an additional wave of U.S. tariffs on Chinese goods will go into effect if the Xi cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit.

Of the 200 companies 168 were higher today and 28 were lower. The underperformers include AGL, which was down 6.5% after revealing its bid for Vocus. And Star Entertainment was down 16.4% after announcing a profit downgrade. Northern Star was down 4% and Saracen Minerals declined 5.2%.

Prospa Group has started trading with an 18% jump to A$4.50 from the offer price of A$3.78.

CURRENCY NEWS: The Australian dollar was lower against the U.S. dollar on Tuesday. The Australian dollar changed hands at $0.6959 after its decline from levels above $0.7000 in the previous session.

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