The ASX has broken its seven-day winning streak and edged lower on Monday despite a surge on Wall Street as hopes build that the US and China are closer to a tariffs deal.
Aussie stocks fell 0.2 per cent to break its streak where it has risen more than five per cent over the past seven trading days to totally recover losses it incurred since Donald Trump’s “Liberation Day” announcements rocked global markets.
Mortgage insurance provider Helia slumped 5.4 per cent since the market opened on Monday while Capstone Copper fell 4.8 per cent and Karoon Energy sank 3.1 per cent.
Wall Street rallied on Friday after the monthly US payroll report revealed 177,000 jobs were added in April to exceed expectations and easing concerns Trump’s tariffs are hurting growth.
US investors were also encouraged by reports Beijing is “evaluating” an offer from the US to negotiate on trade after Trump talked up discussions between the major superpowers.
“The US has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” China’s commerce ministry said on Friday.
Meanwhile, Trump took to Truth Social on Monday (local time) to announce 100 per cent tariffs on any films produced in countries outside the United States.
“The Movie Industry in America is DYING a very fast death,” the US President wrote.
“Other Countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.”
The Nasdaq and the S&P 500 rose 1.5 per cent on Friday, while the Dow Jones rose 1.4 per cent and the NYSE was up 1.8 per cent.
In Europe, London’s FTSE 100 jumped 1.2 per cent, the EURO STOXX 50 index rose 2.4 per cent and Germany’s DAX was up 2.6 per cent on Friday.
New Zealand’s NZX 50 Index has duped its trans-Tasman counterpart to rise 0.2 per cent on Monday.
