Brambles Ltd (ASX: BXB) saw its shares surge by 5% in early trading on Thursday, as the Australian stock market braced for one of its strongest sessions in history. The logistics solutions company's stock price increase comes amid a broader market rally, with the ASX 200 expected to open a staggering 6.6% higher.
The remarkable turnaround in market sentiment follows an exceptional night on Wall Street, where major U.S. indices recorded substantial gains. The Dow Jones rose 7.9%, the S&P 500 climbed 9.5%, and the Nasdaq surged 12.2%, marking the third-largest gain in post-World War II history. This upswing was primarily driven by President Trump's decision to reverse some tariffs, sparking renewed optimism in global trade relations. As a multinational company with significant exposure to international markets, Brambles stands to benefit from improved trade conditions and the resulting positive investor sentiment.
Adding to the positive momentum, Brambles is scheduled to pay its latest dividend to shareholders today. While this payout was already anticipated, it may have contributed to the increased interest in the company's shares. The combination of the broader market rally and the dividend distribution appears to have created a perfect storm for Brambles' stock, resulting in the impressive 5% gain in early trading.