Australia markets closed

ASX fails to shake off communications failure, finishes flat

Investors were hopeful on Tuesday morning. Image: Getty

The benchmark S&P/ASX200 (^AXJO) has finished the day slightly higher, up 0.17 per cent to 5,945.40 points.

The broader All Ordinaries index (^AORD) also finished up 0.19 per cent to 6,069.30 points.

The indexes struggled all day after a major communications mix up in the US, when White House trade adviser Peter Navarro said the US-China trade deal was over, only for the White House to then scramble to correct the record.

“The China trade deal is fully intact. Hopefully they will continue to live up to the terms of the agreement!” US President Donald Trump said.

The botched communications sent both indexes to only move sideways from lunchtime.

What happened at midday?

The ASX200 pared back gains in midday trade, up 0.019 per cent at 12:21pm AEST to 5,945.60 points.

The All Ordinaries followed a similar trajectory, down 0.023 per cent to 6,056.60 points.

The softening comes after fresh figures from the Australian Bureau of Statistics show the value of car and SUV imports has fallen to its lowest in nine years.

Export value was also down four per cent in May from April, and down 13 per cent from May 2019 as exports of coal, gas and non-monetary gold fell.

What happened this morning?

The ASX200 rose 0.64 per cent to 5,98260 per cent at the open on Tuesday after US investors hopeful for new stimulus measures buoyed Wall Street overnight. 

The All Ordinaries also gained 0.74 per cent at 10:11am AEST to 6,103.10 points.

Traders in Australia were waiting on preliminary international trade figures from the Australian Bureau of Statistics for May, as an indicator of the country’s economic strength. 

What happened overnight?

Investors in the US were hopeful for more stimulus after the US House of Representatives Democrats revealed a US$1.5 trillion infrastructure bill. There are also reports the Trump administration is preparing a similar plan. 

Wall Street’s three major indexes finished in the green on Monday with the Nasdaq registering its fourth record closing high in June. 

The Dow Jones Industrial Average rose 153.5 points on Monday, or 0.59 per cent, to 26,024.96, the S&P 500 gained 20.12 points, or 0.65 per cent, to 3,117.86 and the Nasdaq Composite added 110.35 points, or 1.11 per cent, to 10,056.48.

With AAP.

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