Australia 200 afternoon report

The Australia 200 trades 20 points (0.23%) higher at 8198 as of 2.25pm AEST.

The Australia 200 trades higher this afternoon, boosted by reports that President Trump is set to announce a major trade deal, likely with the United Kingdom (UK), at a press conference at midnight tonight (AEST).

Fed acknowledges trade policy complications

This follows just a few hours after this morning's Federal Reserve (Fed) meeting, underscoring the Fed's challenges amidst President Trump's trade policies. While keeping interest rates on hold for a third consecutive meeting at 4.25% - 4.50%, Fed Chair Powell noted that higher-than-expected tariffs had increased risks to both sides of the dual mandate: 'The risks of higher unemployment and higher inflation have risen.'

Hopes of a possible United States (US)-UK trade deal come as US and Chinese officials prepare to hold talks in Switzerland on Saturday. These talks could mark the first step in easing trade tensions between the world's top two economies. While it would be a net positive if US-China trade tensions were to ease, it is unlikely that any deal will see US tariffs on Chinese imports fall much below 50%.

Australia 200 stocks

Banking sector

Bank earnings weighed on the broader index, with mixed investor reactions:

• Australia and New Zealand Banking Group fell 1.9% to $29.41 after reporting first-half (H1) 2025 cash profit of $3.57 billion - slightly above consensus. However, its net interest margin (NIM) slipped 2 basis points (bp) to 1.56%, missing expectations of 1.58%
• Westpac dropped 4.12% to $30.48 as it traded ex-dividend
• Commonwealth Bank of Australia declined 0.35% to $165.38
• National Australia Bank rose 1.8%, extending its post-earnings momentum.

Uranium sector

Uranium stocks rallied after Axios reported that the White House may bypass the Nuclear Regulatory Commission to expedite small modular reactor (SMR) deployment:

• Bannerman Energy soared 7% to $2.89
• Silex Systems gained 4.5% to $3.12
• Deep Yellow advanced 3% to $1.31
• Paladin Energy surged 12.4% to $6.52

Technology sector

A 1% rally in US Tech 100 futures during the Asian session helped lift local tech names:

• Computershare surged 4.4% to $39.70
• Wisetech Global gained 3.45% to $94.92
• Block added 3% to $75.44
• Zip rose 1.5% to $1.85, following a 13% jump yesterday

Gold sector

Gold miners climbed as Spot Gold rose 0.85% to $3392 in Asia:

• Resolute Mining rose 4.3% to $0.61
• Regis Resources gained 3.73% to $4.86
• Evolution Mining added 2.95% to $8.72
• Northern Star Resources climbed 2.75% to $19.96

Australia 200 technical analysis

From its mid-February high of 8615, the Australia 200 fell 16.78% to its early April low of 7169, a move we stated was likely a correction rather than the onset of a new bear market.

After its strong rebound from the April lows, we expect the Australia 200 to spend some time (months) rotating around the 200-day moving average (currently at 8147), albeit with a good dose of the usual volatility viewed in May thrown into the mix.

Australia 200 daily chart