Australian shares reach four month highs on trade optimism

Australian shares soar on hopes the US and China trade wars could soon resolve

Australian shares soared to their highest in more than four months on Monday, strengthened by hopes US and China trade wars could resolve after positive trade talks.

The ASX 200 index rose 0.5% to 6,095.70 at time of writing with the benchmark ending higher on Friday.

Financial markets reacted to news that US and China negotiators were making progress after week-long high-level trade talks in Beijing.

Analysts say the gains were led by commodities and the rest of the sectors were held up on optimism that officials would reach a deal ahead of the March 1 deadline.

Last week, US president Donald Trump said on Friday that he may extend the March 1 deadline and keep tariffs on Chinese goods from rising. Trade tension optimism also upheld mining stocks, with China one of Australia's top trading partners.

Top miners BHP rose 1.5% while Rio Tinto climbed 2.1 %.

Oil prices touch highest in 2019

Oil prices reached some of their highest prices on Monday, touching to their highest level in 2019, amid OPEC-led supply cuts and US-imposed sanctions on Venezuela and Iran.

Santos Ltd and Oil Search were among the top gainers, up 1.9% and 2.2% on Monday.

US West Texas Intermediate WTI Crude futuress hit $56 per barrel for the first time in 2019, before edging back to $55.89 per barrel by mid-day on Monday.

International Brent crude futures hit a 2019-high of $66.61 per barrel early on Monday before easing to $66.47 per barrel.

Both WTI and International Brent benchmarks were their highest levels since November 2018.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.