Trump's Tariff Retreat: Wall Street Reacts, ASX Follows (2026)

The Australian stock market is poised for a positive start, mirroring Wall Street's relief rally after US President Donald Trump's tariff U-turn. But will this optimism last?

Key Insights:

1. Trump's decision to retract potential tariffs on European nations has sparked a surge in US markets, with the S&P 500, Nasdaq, and Dow Jones all soaring over 1%.

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2. The ASX 200 futures hint at a 0.6% rise, indicating a positive opening for the Australian market.

3. Global markets are mixed: Asian indices are mostly positive, while European markets show slight declines.

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Market Snapshot:

• ASX 200 futures: +0.6% (8,800 points)
• Australian dollar: Steady at 67.58 US cents
• Asia: Nikkei 225 (-0.4%), Shanghai Composite (+0.1%), Hang Seng (+0.4%)
• Wall Street: Nasdaq (+1.9%), S&P 500 (+1.5%), Dow (+1.3%)
• Europe: FTSE (+0.1%), DAX (-0.6%), Stoxx 600 (-0.02%)
• Spot gold: +1.0% ($4,812/ounce)
• Brent crude oil: +0.4% ($65.20/barrel)
• Iron ore: -0.6% ($103.30/tonne)
• Bitcoin: +0.5% ($89,848)

Upcoming Events:

• 11:30 am: The Australian Bureau of Statistics' December job figures will reveal the latest unemployment rate, with NAB predicting no change and 40,000 new jobs.

Previous Day's Recap:

The local market's decline was cushioned by mining stock gains, as gold prices soared. Stay tuned for more insights from our business reporters throughout the day.

Today's Preview:

Good morning, and welcome to our financial news coverage! Adelaide Miller here, bringing you the latest from the world of finance, business, and economics. Trump's speech in Davos, including the withdrawal of tariff threats, has significantly impacted global markets. The ASX is set to open higher, with the Aussie dollar trading at 68 US cents. Stay tuned for more updates as the day unfolds!