Australia Market gains on materials, financials

Headline indices of the Australia stock market were higher on Friday, 06 July 2018, following overnight rally on Wall Street, with local participant showing few signs of anxiety ahead of a US announcement on tariffs later in global day. Most of ASX issues inclined, with shares in materials were the most improved group, followed by energy, financials, realty, and telecom issues. Around late afternoon, the benchmark S&P/ASX 200 Index rose 41.18 points or 0.66% to 6,256.70. The broader All Ordinaries Index was up 37.59 points or 0.6% to 6,340.50.

Market topside was, however, capped as investors were concerns over the negative implications of the US set to impose tariffs on Chinese imports later in global day that many investors fear might trigger a full-scale trade war in a blow to the global economy.

 

The United States is due to impose the tariffs on Chinese exports on July 6. China's customs department informed markets on Thursday that China's retaliatory tariffs on US goods will take effect immediately after US tariffs on Chinese imports kick in. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.

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