Market wrap: ASX200 lifts on Trump-UK trade deal | Australian Markets

Cautious traders pushed the Australian sharemarket larger on Thursday on the prospect of a new Trump trade deal with Britain, even because the US Federal Reserve warned of elevated dangers to larger unemployment and inflation within the world’s largest financial system.

The benchmark ASX200 lifted 13.4 factors, or 0.16 per cent, to close at 8191.7 factors, whereas the broader All Ordinaries index rose 21.9 factors, or 0.26 per cent, to complete at 8421.7.

Eight of 11 industry sectors ended within the inexperienced, led by the defensive utilities sector with a 1.81 per cent rise.

Origin Energy jumped 1.67 per cent to $10.99 a share, whereas APA Group superior 1.92 per cent to $8.51.

The staples sector gained 0.86 per cent, with grocery store giant Coles climbing 1.13 per cent to $22.29 and Woolworths including 1 per cent to $32.83.

Financials proved a drag on the market, dropping 0.62 per cent, with banking giant ANZ tumbling 1.93 per cent to $29.40 after reporting combined half-year outcomes.

The company delivered a report $11bn income haul however its web curiosity margin, a key measure of profitability, slipped to 1.56 per cent.

Westpac misplaced 4.06 per cent to $30.50 and Commonwealth Bank dipped 0.27 per cent to $165.51, whereas NAB climbed 1.39 per cent to $36.37.

The huge miners have been combined as Singapore iron ore futures fell 1.95 per cent to $96.40 a tonne.

BHP ended the day flat, dropping 1c to $37.92, Rio Tinto edged up 0.13 per cent to $116.08 and Fortescue slipped 0.68 per cent to $15.98.

The market fell in early trading however then lifted about 11am AEST after US President Donald Trump posted to Truth Social he would announce a trade deal with a main financial accomplice, broadly believed to be the UK, later on Thursday night time.

“Hopes of a possible US-UK trade deal come as US and Chinese officials prepare to hold talks in Switzerland on Saturday,” IG markets analyst Tony Sycamore mentioned.

“These talks could mark the first step in easing trade tensions between the world’s top two economies.

“While it would be a net positive if US-China trade tensions were to ease, it is unlikely that any deal will see US tariffs on Chinese imports fall much below 50 per cent.”

Thursday’s cautious trading adopted a subdued lead from Wall St in a single day on Wednesday as traders digested some hawkish rhetoric from US Fed chairman Jerome Powell, who warned bluntly President Trump’s tariff insurance policies introduced challenges to the central bank’s twin mission to control costs and help employment.

“The risks of higher unemployment and higher inflation have risen,” Mr Powell mentioned.

Capital.com senior financial market analyst Kyle Rodda mentioned the Fed was adopting a “wait and see” method to the financial shock of Liberation Day.

“Policymakers acknowledged the potential for tariffs to push inflation higher while also dampening growth, a delicate balancing act that leaves the outlook uncertain,” he mentioned.

“Markets were somewhat underwhelmed by the Fed’s reluctance to explicitly commit to future interest rate cuts and to ‘look through’ one-off inflationary shocks from trade policy.

“However, the central bank stopped short of closing the door on such measures, keeping the prospect open for cuts at coming meetings.”

The Dow Jones rose 284 factors, or 0.7 per cent, to 41,113 factors, the S and P 500 gained 0.43 per cent to 5631 and the tech-heavy Nasdaq added 0.27 per cent to 17,738.

In native company news, toll street company Transurban introduced it will cut 300 jobs in a $50m cost-savings push.

Shares within the company jumped 1.68 per cent to $14.55.

Mining and infrastructure providers giant Orica leapt 7.4 per cent after reporting a 40 per cent leap in half-year web income excluding important objects to $250.8m.

Polynovo Limited soared 11.45 per cent to $1.46, making it the highest gainer on the ASX200.

The largest laggard was gaming company Light and Wonder, which slumped 8.43 per cent to $133.15 after warning traders new trade insurance policies would add “incremental cost pressures” to its business.

“These tariffs place additional duties on imports and we currently source a portion of the raw materials and components for our gaming business from China and across Asia,” the company mentioned.

The Aussie greenback misplaced 0.23 per cent to buy 64.6c on the closing bell.