The Australian Securities Exchange (ASX) has shown signs of recovery amidst speculations on the impact of US tariffs. Following a period of decline, the ASX saw a positive turn as recent US data indicated a slowdown in inflation for February. Market analysts are closely monitoring the repercussions of US tariffs on Australian aluminum and steel.

The S&P/ASX 200 index rebounded by 15.2 points, or 0.2%, reaching 7,801.4 points, marking a shift from its recent downward trend. While the index had experienced a 3.62% decrease over the past five days, it remained 0.93% lower compared to the previous year. Notably, most sectors, except materials, displayed gains at the start of the trading session.

Inflation figures for February revealed a 0.2% increase in both headline and core consumer price indexes, a decline from the previous month. Despite concerns over a potential global trade conflict, the ANZ suggested that the US tariffs on aluminum and steel are unlikely to significantly impact Australian goods exports as these commodities accounted for a minimal percentage of total exports in 2024.

Economist Sophia Angala emphasized that Australia’s trade deficit with the US makes it less susceptible to direct repercussions from the tariffs. The surge in gold prices, rising nearly 20% to around US$2,935 per ounce, was attributed to lower-than-expected inflation levels and fears surrounding global trade tensions.

In response to US tariffs, Canada imposed a 25% retaliatory levy on approximately C$30 billion worth of US goods. This move added to the uncertainties surrounding international trade dynamics. On the market front, uranium miner Boss Energy saw a 3.92% increase in its stock value after announcing a strategic investment in Laramide Resources. Gold mining companies, Vault Minerals and Ramelius Resources, also experienced positive growth due to the surge in gold prices.

The S&P/ASX 200 index represents the top 200 companies listed on the ASX by market capitalization, encompassing a significant portion of Australia’s equity market. Widely regarded as the benchmark for institutional investors, the index serves as a key indicator of the Australian stock market’s performance.

The recent developments in the ASX reflect the interplay between global economic factors and domestic market dynamics. As uncertainties persist regarding trade policies and inflation rates, market participants continue to assess the potential implications on various sectors. The resilience demonstrated by the ASX amidst these challenges underscores the market’s adaptability to external pressures and its capacity to navigate through volatile conditions.