Australia 200 afternoon report: 10 June 2025

The Australia 200 trades 70 points (0.82%) higher at 8586 as of 3.00pm AEST.

Australia 200 hits new high on US trade optimism

Refreshed from the King's Birthday long weekend, the Australia 200 has surged today, hitting a four-month high of 8592 and is poised for its highest daily close on record.

Today's gains follow a stronger-than-expected jobs report in the United States (US) on Friday night and President Donald Trump's announcement that US and Chinese officials will hold trade talks this week.

Trade talks overview

The trade talks, which began in London overnight, are set to continue this week, focusing on resolving disputes over tariffs, rare earth mineral exports, technology restrictions, and student visas. China appears to have approved increased rare earth exports, signalling goodwill, but no major tariff breakthroughs or comprehensive agreements have been confirmed.

For the Australia 200 to continue its ascent this week, it would be beneficial to see the agreements made in Geneva last month become permanent.

US tariffs on Chinese goods were temporarily reduced from 145% to 30%, and Chinese tariffs on US goods from 125% to 10% for 90 days. Additional assurances from China regarding rare earth access could result in the US relaxing export controls on technologies like semiconductors.

Consumer sentiment and local drivers

Back home, the Westpac consumer confidence index rose just 0.5% to 92.6 in May, undershooting consensus expectations for a 94.4 print and remaining well below the long-term average. The lacklustre reading supports the case for additional monetary easing by the Reserve Bank of Australia (RBA).

Australia 200 stocks

Consumer discretionary sector

The prospect of more RBA interest rate cut hopes and trade optimism lifted consumer-facing stocks.

• Aristocrat Leisure rose 3.4% to $64.43
• JB Hi-Fi gained 1.55% to $110.71
• Kogan added 1.36% to $4.09
• Myer lifted 1.1% to $0.69

Financial sector

The financial sector hit a record high of 9449, marking a 25% recovery from its April low. Major banks led the charge:

• NAB climbed 1.63% to $39.22
• Westpac rose 1.45% to $33.66
• ANZ gained 1.42% to $29.92
• Commonwealth Bank of Australia touched a record high of $182.25

Mining sector

Mixed trade in the miners followed weak China inflation data, which confirmed a fourth consecutive month of consumer deflation.

• Rio Tinto dropped 1% to $108.51
• BHP edged 0.5% higher to $38.42
• Fortescue added 0.6% to $14.74

Uranium stocks

Uranium stocks surged on bullish momentum.

• Paladin Energy rallied 4.39% to $6.66 after hitting a three-month high of $7.03
• Bannerman Energy rose 3.51% to $2.95
• Deep Yellow climbed 2.25% to $1.36
• Boss Energy advanced 2.1% to $3.92

Australia 200 technical analysis

Despite the Australia 200’s impressive rebound from the April low, we do not see the grounds for a sustained break of the record high. Hence, we will be watching closely for evidence of a double top formation as the precursor to a pullback.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 10 June 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}