Australia’s ASX 200 index rose 0.33% on Wednesday morning, pushing tariff development aside. Bank stocks have made profits.
The Federal Bank of Australia (CBA) rose 1.75% to a record high of $165.37 after violating profit estimates. National Australia Bank (NAB) and Westpac Banking Corp. (WBC) increased by 1.36% and 1.26%, respectively.
However, an overnight slide of 1.70% of the iron ore spot price weighed on mining stock. BHP Group Ltd. (BHP) and Rio Tinto Ltd. (RIO) fell by 0.19% and 1.01%, respectively.
Outlook: Future risks and opportunities
Looking forward to it, the US-China trade development and AI boom will continue to promote market sentiment. AI stocks could extend their upward trajectory as competition becomes more intense and new partnerships emerge. However, tariff fuel volatility can affect manufacturing and mining inventory.
Optimism over US-China trade talks could lift Australia, Hong Kong and mainland China markets. The Hang Seng index may continue to benefit from AI-driven momentum. Nevertheless, the Asian market remains vulnerable to further tariff shocks, underscoring the need for caution.
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