Top 10 at 11: ASX jumps in early trade as US and China cut tariffs by 115pc

Morning, and welcome to Stockhead’s Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading.

With the market opening at 10am sharp eastern time, the data is taken at 10:15, once trading kicks off in earnest.

In brief, this is what the markets have been up to this morning.

Markets surge as US-China trade normalises

While comments over the weekend from the China-US trade negotiations lacked substance, this morning’s announcement certainly didn’t.

In what is essentially a return to the new normal, both countries have agreed to slash tariffs by 115%. That leaves a US tariff on Chinese goods at 30%, and one on US goods into China of 10%.

It was a jubilant day of trading on Wall Street overnight.

Wall Street’s CBOE Volatility Index dropped to 18.39 after hitting a peak of 60.13 in early April, and there was renewed appetite for growth stocks, particularly among the Magnificent 7.

Amazon jumped 8.1%, Nvidia 5.4% and Tesla 6.8%. Apple wasn’t left behind, making a 6.3% gain after announcing potential price increases for its iPhone products.

The S&P500 Tech sector lifted 4.7% overall while Consumer Discretionary was on a tear, soaring 5.7%.

US markets recovered to where they’d been sitting around March and late February earlier this year. The Dow gained 2.8%, the S&P500 3.3% and the Nasdaq 4.4%.

Europe didn’t miss out on the party.

Resource stocks led the way up, adding 5% as iron ore gained 1.2% and aluminium 3.2%.

The FTSE300 added 1.3% and the UK FTSE100 0.6%.

Oil rose once again, adding 1.6% to US$64.96 a barrel, while gold continued its descent, slipping 2.5% to US$3,228 an ounce.

ASX not to be left behind

A rising tide lifts all boats, they say, and the ASX is certainly on the rise.

The Aussie bourse has lifted 0.72% as of about 10:30 AM AEST, riding a buoyant wave provided by international tailwinds.

The Info Tech sector has shot up 4%, Energy has lifted more than 3% and healthcare has bounced back with a 2.5% jump after languishing the last few weeks.

Consumer Staples is the only sector firmly in the red, down 1.8% at time of writing.

Overall, it’s shaping up to be a day of gains for the ASX.

Now, let’s see who’s riding the wave, and who’s getting dumped on the beach.

WINNERS

In the news…

Grand Gulf Energy (ASX:GGE) has inked an MoU to collaborate with TSXV-listed potash developer Sage Potash on the Red Helium project, near the prolific Paradox Basin in Utah.

The two will jointly develop common infrastructure, share the cost of a 3D seismic survey, and potentially drill a well targeting both helium and potash.

GGE reckons the partnership will drastically reduce the cost of exploration and development, freeing up more capital to unlock the value of the project.

Power Minerals (ASX:PNN) has struck a gallium bounty at the Santa Ann project in Brazil, with results of up to 232.7g/t gallium oxide.

The vast majority of drilling at Santa Ann has been shallow, less than 30m in depth, giving PNN confidence there’s plenty of potential to extend mineralisation and build a sizeable resource estimate.

Battery recycling and lithium company Livium (ASX:LIT) has landed an expanded battery recycling deal with one of China’s largest EV manufacturers, BYD, which holds a 14% EV market share in Australia.

The new 3-year deal with LIT’s subsidiary Envirostream covers commercial vehicle battery ranges and battery energy storage systems, as well as New Energy vehicle batteries.

“In the short time working together our volume expectations have been exceeded, and we are excited to expand our partnership through this New Agreement,” LIT CEO and MD Simon Linge said.

“We thank BYD Australia for their confidence in our capabilities and look forward to maintaining our high quality of service.”

LAGGARDS

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