Meanwhile, Western-Australia based gold miner Bellevue Gold jumped 6.9 per cent, and was one of the top-performing stocks around midday. This comes after US President Donald Trump unveiled overnight a road map to charge reciprocal tariffs on trade partners, which saw demand and prices for safe-haven assets such as gold increase.
Origin shares also rallied, up 2.4 per cent, a day after releasing its results. Technology stocks similarly rose, lifted by shares of the second-largest tech company in Australia – Xero – up 2.1 per cent.
In the US, stocks rallied to the brink of a record after more companies reported fatter profits than expected. Wall Street mostly yawned, again, at the latest announcement on tariffs by President Donald Trump, which may not take full effect for at least several weeks.
Wall Street was stronger across the board.Credit: Reuters
The S&P 500 climbed 1 per cent to pull within 0.1 per cent of its all-time high set last month. The Dow Jones gained 342 points, or 0.8 per cent, and the Nasdaq composite jumped 1.5 per cent.
MGM Resorts International jumped 17.5 per cent after reporting stronger profit for the latest quarter than analysts expected. It cited growth in China and said trends are looking up for its Las Vegas and North American digital businesses.
Other companies reporting better profit than expected included GE HealthCare Technologies, which rose 8.8 per cent, Molson Coors Beverage, which gained 9.5 per cent, and Robinhood Markets, which jumped 14.1 per cent.
Such reports, along with a remarkably solid US economy, have kept US stocks near their records. A report on Thursday said fewer US workers applied for unemployment benefits last week, the latest signal of a firm job market.
That’s even though many downward forces are weighing on stock prices.
Chief among them are worries about stubbornly high inflation. A report said inflation at the wholesale level was hotter than economists expected last month, following a similar report from the day before on inflation that US consumers are feeling.
Tariffs could push up inflation even further. And Trump on Thursday rolled out his plan to increase US tariffs on imports from other countries that will be customised, based in part on how much tax each country charges on US goods.
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While economists warn about the pain such tariffs can create, financial markets have increasingly taken the threats in stride. Belief is strong that Trump is using tough talk to drive negotiations, but he may not fully go through with it in order to avoid damaging the US stock market and economy.
It could take weeks or a few months to complete the necessary reviews for the tariffs announced on Thursday, according to a senior White House official who insisted on anonymity to preview the details on a call with reporters. That implies plenty of time for negotiations that could ease the ultimate impact.
Of course, Wall Street’s belief that the stock market is serving as a guardrail hemming in Trump may prove dangerous. If the stock market keeps gliding through each escalating threat, it could embolden Trump to make even bigger moves.
In stock markets abroad, indexes were mixed across Europe and Asia. Nissan also announced on Thursday it was dropping the talks it had started in December with Japanese rival Honda for a business integration.
With AP
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