US-Australia minerals deal propels ASX 200 to a new record

The Australia 200 trades 60 points (0.67%) higher at 9092 at 3.40pm AEDT.

ASX 200 at record highs

The Australia 200 (ASX 200) surged to a fresh record high today of 9115.2, marking its second record high in the past week. This was driven by a strong session on Wall Street and a landmark United States (US)–Australia critical minerals agreement.

New US-Australia minerals deal

The US$8.5 billion (A$13.5 billion) framework deal was signed earlier this morning in Washington, between Australian Prime Minister Anthony Albanese and US President Donald Trump. The agreement, formalised during Albanese’s White House visit, aims to accelerate investments in critical minerals and rare earth elements (REEs), to diversify global supply chains away from China, which dominates over 90% of REE processing.

Prime Minister Albanese described the agreement as a ‘pipeline ready to go — we’re just getting started’, while President Trump predicted, ‘In about a year, we’ll have so much critical mineral and rare earths that you won’t know what to do with them.’ The agreement positions Australia’s world-class mining sector, a major REE holder, as a key supplier for US tech and defence needs, countering China’s market dominance.

ASX 200 stocks

Financial sector

• Buy-now-pay-later stock Zip dived 8.03% to $4.25 on profit-taking after a 350% run from its April $1.08 low to yesterday’s $4.93 high. Today’s sell-off came despite a strong first quarter (Q1) 2026 trading update yesterday showing group total transaction volume (TTV) at a record $3.9 billion (+38.7% YoY) and 26 million transactions (+21.9% YoY).

Gold stocks

Gold stocks surged yet again after bullion hit a fresh record high of $4381 overnight.

• Regis Resources jumped 5.23% to $6.53
• Evolution Mining added 4.41% to $11.6
• Perseus Mining lifted 3.02% to $5.12
• Northern Star Resources gained 2.40% to $25.72.

Materials sector

The ASX 200 materials sector reaches a fresh record hig.

• Alcoa DRC surged 7.71% to $59.80
• Silex Systems jumped 5.50% to $8.06
• South32 lifted 5.13% to $3.28
• Pilbara Minerals gained 5.56% to $2.86
• BHP rose 2.62% to $44.26
• Mineral Resources climbed 2.46% to $42.41

Retail-facing stocks

Retail-facing stocks also made solid gains on expectations of a Reserve Bank of Australia (RBA) rate cut in two weeks, following last week’s dismal labour force report.

• Super Retail Group lifted 1.64% to $17.02
• Myer Holdings added 1.20% to $0.43
• Temple & Webster rose 1.18% to $23.14
• Domino’s Pizza added 0.53% to $15.12.

Technology sector

•  DroneShield snapped a seven-day losing streak, surging 8.72% to $4.86 after bouncing from support at $4.50 - $4.30, highlighted in last Thursday’s ASX 200 afternoon report.

ASX 200 technical analysis

After seven weeks of consolidation during September and the first half of October, the ASX 200 has exploded to life in recent weeks. Presuming the ASX 200 remains above a layer of short-term support at 8990 - 8970, it can extend its gains towards the next upside target at 9250, with scope to 9500 into year-end.

Note that if the ASX 200 slips back below support at 8990 - 8970, it would suggest the recent break higher has failed.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 21 October 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.}