Is Australia ready to seize the spoils of a global trade war or risk getting caught in the crossfire? The ongoing tariff battle between the U.S. and China is reshaping the global economy, and Australia is right in the thick of it.
From energy and agriculture to mining and currency, stakes have never been higher.
China’s 15% on U.S. coal and liquefied natural gas (LNG) imports could be a jackpot for Australian exporters. As a leading supplier, Australia is well-positioned to fill the gap. Woodside Energy Group (ASX:WDS), one of the nation’s top LNG players, stands to gain big from surging Chinese demand – a potential revenue and market share bonanza, so keep a close eye on this stock.
The agricultural sector also spells opportunity. With Chinese tariffs targeting U.S. farm goods, Oz producers could see booming exports of beef, barley, and wine.
Elders Ltd (ASX:ELD) is primed to capitalise on this, thanks to its extensive agribusiness network and expertise. The share price also looks promising, recently finding support around the key historical stronghold level of $7.
But it’s not all good news. The mining sector may face stormy waters. Tariffs could drag down China’s economy, reducing its appetite for raw materials and hitting Australian giants like BHP Group Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO).
Meanwhile, trade uncertainty is putting downward pressure on the Aussie dollar. A weaker currency makes exports more competitive but raises import costs, squeezing household budgets and stoking inflation in an environment that is seeking the opposite right now.
Therefore, the US-China trade tensions are a double-edged sword for Australia.
The question is: Can we turn chaos into opportunity, or will we be left counting the costs?
The best-performing sectors include Materials and IT, both up over 1%, followed by Communication, up under 0.5%. The worst performers include Healthcare, down over 2%, followed by Staples and Utilities, both down over 1%.
The best-performing stocks in the ASX 100 include Northern Star Resources and Evolution Mining, both up over 4%, followed by Iluka Resources, up over 3%.
The worst performers include Fisher & Paykel Healthcare and IDP Education, both down over 8%, followed by Orora Limited, down over 5%.
The All-Ordinaries Index rode a rollercoaster this week, kicking off with a dramatic selloff on Monday that wiped nearly 2% off the board.
The market was rattled by a fresh wave of trade tension as U.S. President Donald Trump placed tariffs on Canada, Mexico, and China. Investor sentiment nosedived, gripped by fears of prolonged uncertainty.
But just when it looked bleak, buyers swooped in mid-week, lifting the index back to near Monday’s opening levels. Despite closing yesterday with a modest loss of less than 0.05%, the uptrend remains intact – though buckle up for more twists as the United States-China trade drama unfolds.
Looking ahead, the Aussie index seems poised to break through to a new all-time high, with the 9,200 level firmly in sight heading towards Week 7.
Fuelling this potential surge is earnings season, now in full swing – a critical period when share prices often make their boldest moves. Stocks that crush expectations can soar, with gains that tend to hold.
On the other side of things, however, those that miss the mark risk steep declines, making strategic timing and solid research essential.
As we navigate shifting global trade dynamics and dissect earnings, the key will be targeting growth-ready stocks and resilient sectors to stay ahead of the game. These are exciting times—stay sharp, stay focused, and be ready to seize the next opportunity.
For now, good luck and good trading.
Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%.
He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online at www.wealthwithin.com.au.
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