Australia 200 afternoon report: 13 May 2025

The Australia 200 trades 33 points (0.40%) higher at 8266 as of 2.15pm AEST.

The Australia (ASX) 200 added a quickfire 80 points (+0.97%) this morning, hitting a ten-week high of 8314, before trimming gains as traders showed a lack of appetite to chase the rally, which has taken it to within 3.5% of its record highs.

Will ASX200 consolidate near record highs after tariff truce boost?

Early strength followed a sharp rally on Wall Street after news broke that the United States (US) and China had agreed to temporarily reduce tariffs, offering a reprieve from escalating trade tensions. The agreement, released after yesterday’s ASX 200 close, includes reciprocal tariff cuts of 115%, with US tariffs dropping to 30% and Chinese tariffs to 10% for the next 90 days.

This substantial easing of trade friction reduces growth risks for both economies - especially positive for the ASX 200 given its sensitivity to Chinese demand. However, uncertainty remains with the reciprocal tariff pause set to expire on 8 July and the broader US-China agreement concluding on 10 August.

The potential for renewed hawkish rhetoric from President Trump, particularly if equity strength offers political cover, also looms as a risk.

Domestic sentiment improves

Westpac consumer confidence rose 2.2% in May to 92.1, buoyed by the Reserve Bank of Australia's (RBA) interest rate cut, ASX 200 rebound, and post-election clarity.

NAB business sentiment improved to -1, still negative but consistent with cautious optimism amid a soft global outlook.

Australia 200 stocks

Energy sector

Energy stocks extended gains following a third straight rise in crude oil to $61.95:

• Woodside rose 3.6% to $21.55
• Santos added 3.1% to $6.45
• Viva Energy climbed 1.9% to $1.88
• Beach Energy increased 1.79% to $1.28

Mining sector

Iron ore  surged to $100/tonne post-tariff news:

• Fortescue jumped 4.14% to $16.84
• BHP rallied 2.73% to $39.45, breaking resistance at $38.30/50
• Rio Tinto advanced 2.5% to $120.29, reclaiming March highs

Technology sector

The IT sector surged 3.65%, echoing theUS Tech 100’s 4% gain:

• Appen soared 18.5% to $1.12
• Life360 gained 13.21% to $26.99
• Zip added 12.9% to $2.06

Defensive sector

As investors rotate out of safe havens:

• Coles fell 3.64% to $21.46
• Woolworths declined 2.84% to $31.84
• Endeavour Group dropped 1.67% to $4.11

Australia 200 technical analysis

From its record high of 8615 in mid-February, the ASX 200 fell 16.78% to an April low of 7169 - a move seen as corrective.

The index has now rebounded to within 3.5% of its all-time high. Despite the bullish trade developments, our base case remains for a period of range-bound trade over coming weeks.

Given the more aggressive tariff cuts, consolidation is likely in a revised, higher band of 8400 to 7950, compared with the earlier expected range of 8200 to 7730.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 13 May 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.}