Australian shares rose on Tuesday, lifted by financial and technology stocks, as investor sentiment improved following signals from U.S. President Donald Trump that the U.S. may seek a negotiated trade resolution with the European Union.
The S&P/ASX 200 index gained 0.5% to 8,615.1 points by 0039 GMT, recovering from Monday’s 0.1% dip.
Markets found support after Trump hinted at potential tariff talks, backing away slightly from his earlier 30% tariff threat on EU and Mexican goods effective August 1. EU officials are now preparing for trade negotiations in Washington, cooling fears of a full-blown trade war — a move that buoyed global equities.
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Sector Highlights:
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Financials: The big four banks — Commonwealth Bank, Westpac, NAB, and ANZ — rose between 0.6% and 0.9%, leading the market higher.
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Technology: The tech sector surged 1.5%, mirroring overnight gains on Wall Street, where U.S. tech giants rallied on renewed optimism over easing macroeconomic tensions.
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Mining: Resource stocks lagged, with the mining index slipping 0.7% amid subdued iron ore prices.
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BHP fell 0.7%
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Rio Tinto dropped 1%
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Fortescue Metals eased 0.8%
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This decline came despite recent multi-month highs in iron ore, as investors digested news from Prime Minister Anthony Albanese’s visit to China, where he advocated for Australia–China collaboration on green steel development.
The Bigger Picture:
Analysts warn that Australia could lose up to 50% of its iron ore revenue unless it transitions toward green iron production, aligning with global shifts toward decarbonized steelmaking.
Market Outlook:
The rebound suggests investors are closely watching geopolitical developments, especially:
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US-EU trade dynamics
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China-Australia relations
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Raw material price trends
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Sustainability-linked industrial strategies
Further volatility may arise as markets await concrete progress from upcoming tariff negotiations and commodity pricing cues.