Lunch Wrap: ASX rolls with punches as China-US trade war threatens; Trump says ‘don’t worry’

• US were markets in full retreat as Trump threatens more tariffs on China
• Latest trade stoush sparked by Chinese export controls on critical mineral processing technology
• ASX experiences lesser losses after Trump says “don’t worry” about Chinese trade war

US President Trump handed American markets an absolute thrashing on Friday. Firing a 494-word salvo at Beijing, da prez threatened an immediate escalation in the US-China trade war.

Trump’s comments followed an increase in Chinese export controls on critical mineral processing technology and high-tech components, targeting military applications of rare earths and lithium in particular.

Relations between Beijing and Washington had been improving over the past six months, but the spectre of April’s Liberation Day tariffs rose again after Trump threatened to retaliate, describing a potential “massive” tariff increase on Chinese imports.

US markets crashed out. The S&P 500 finished down 2.7%, the Dow 1.9% and the Nasdaq plunged 3.6% in a single session.

Lucky for Aussie stocks, though, Trump Always Chickens Out seems to be in full effect. Let’s hope for TACO Tuesday?

A few hours ago, Trump returned to Truth Social to insist “it will all be fine!” and called China’s new export controls a “bad moment” before insisting the US wants to “help China, not hurt it”.

US futures returned to positive territory, copper and crude staged recoveries from some painful plunges, and gold futures held onto its gains, up 1.53% to US$4061 an ounce and within range of new highs.

Meanwhile on the ASX, things could definitely be a lot worse.

10 of 11 sectors were down as of about 12:30 pm AEDT, but the ASX 200 has shed 0.69% compared to this morning’s predictions of almost 1%.

Not great, but a good sight better than April 3’s eyewatering 4% plunge.

Resources stocks continue to provide support

The materials sector was the sole positive point on the ASX this morn, supported by a 3.14% surge in the XGD as gold stocks continue to benefit from global uncertainty.

Rare earths and lithium stocks were also pushing the sector higher, directly benefiting from China’s crunch on international exports of the critical minerals.

Gold, rare earths and lithium technology companies have been dominating the top movers charts today.

Mineral processing stocks are really flying.

Astron (ASX:ATR) has added 16%, Sunrise Energy Metals (ASX:SRL) 9% and Novonix (ASX:NVX) 7%.

For all that, the materials sector was barely holding on by its fingernails, up just 0.01% at the time of writing.

One standout amongst all the mineral stocks is Pacific Smiles (ASX:PSQ), which surged 36%.

PSQ entered into a bid implementation agreement to be acquired by Beam Dental Bidco at a 37.5% premium to its last closing share price last Friday, recommending shareholders accept the offer.

ASX LEADERS

Today’s best performing stocks (including small caps) intraday:

 In the news…

Litchfield Minerals (ASX:LMS) has hit a copper sulphide mineralised intersection of more than 100 metres in width at the Oongalabi project in Northern Territory.

The company’s handheld x-ray fluorescence readings indicate the 104-metre drilling result grades up to 1.37% copper, although true assays will have to await laboratory assessment.

Morella Corporation (ASX:1MC) has achieved rubidium extraction rates of up to 89% in test work on samples from its Mt Edon project in WA. The tests validate 1MC’s processing strategy, opening the way for variability testing and scoping-level economic inputs to support the project’s advancement.

AustChina (ASX:AUH) has received a non-binding letter of intent from Bluestone Energy to invest $1.5 million in AUH at 3c per share. The company intends to use the funding – should shareholders approve the investment – to make new project acquisitions and continue exploration at its existing assets.

Toro Energy (ASX:TOE) has entered into a scheme implementation deed to be acquired by IsoEnergy, combining the two entities to form a diversified suite of uranium development and exploration assets across Canada, the US and Australia.

The scheme implies a value at a 79.7% premium to TOE’s last traded price on the ASX, equalling about $75 million.

ASX LAGGARDS

Today’s worst performing stocks (including small caps) intraday:

IN CASE YOU MISSED IT

Nova Minerals (ASX:NVA) has firmed up its first-mover advantage to become a strategic supplier of military-spec antimony for the US.

Uvre (ASX:UVA) has started maiden drilling at its Waitekauri gold project in New Zealand focusing on the Jubilee mine where historical trenching returned up to 80g/t.

Rio Tinto (ASX:RIO) and Legacy Minerals (ASX:LGM) have inked a partnership which could deliver up to $25 million in exploration funding at Thomson.

Patronus Resources (ASX:PTN) is planning follow-up drilling at Guppy after recent RC drilling returned up to 13m at 2.12g/t gold from 105m.

Cannindah Resources (ASX:CAE) starts drilling at Mt Cannindah, aiming to grow existing resources and test two large porphyry systems.

White Cliff Minerals’ (ASX:WCN) magnetic survey has outlined multiple Danvers-style copper targets along 10km of the Teshierpi fault in Nunavut.

LAST ORDERS

Locksley Resources (ASX:LKY) has qualified to trade on the OTCQX Best Market, upgrading from the OTCQB Venture Market.

The move enhances LKY’s visibility and accessibility to US investors, supporting its US-focused critical minerals strategy via the flagship Mojave project in California.

Verity Resources (ASX:VRL) has secured the remaining interest in several high-grade critical metals projects in Botswana from BCL Investments, a Botswana government-owned subsidiary.

VRL will add the Airstrip copper-silver prospect, Dibete copper-silver prospect, and Maibele North copper-nickel-silver-platinum group element-gold prospect, which holds a resource of 2.4Mt at 0.72% nickel and 0.21% copper with gold and PGE credits.

Sultan Resources (ASX:SLZ) has secured firm commitments to raise $1 million in a placement, to support the acquisition of the Damara gold project in Namibia, and the Narndee nickel-PGE project and Niobe Rubidium deposit in Western Australia. SLZ is offering the placement at a 13.2% premium to its 15-day VWAP.

At Stockhead, we tell it like it is. While Locksley Resources, Verity Resources and Sultan Resources are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.