Australia’s ASX 200 Index rose 0.66% on Tuesday morning, tracking gains in Dow futures. Banking, mining, gold and technology stocks contributed to the gains.
National Australia Bank (NAB) rose 2.05%, while ANZ (ANZ) rose 1.76%. Bank stocks benefited from falling US government bond yields, boosting demand for high-yield Australian banks.
Mining giant BHP Group Ltd. (BHP) gained 0.87%, while spot iron ore prices rose 0.38% on Tuesday. Hopes that the US and China could avert a trade war boosted the outlook for iron ore demand.
Outlook: risks and opportunities
Global markets remain sensitive to geopolitical and economic uncertainties following Trump’s inauguration. Important factors include:
- US-China trade relations and tariff announcements.
- Strong US economic data could undermine market expectations for Fed rate cuts.
- China’s stimulus measures to support domestic growth.
While cautious central bank policies can provide stability, investors should closely monitor trade policies, inflation trends and monetary signals to manage market volatility. Discover strategies to navigate this week’s market trends here.