FX.co ★ Australian Shares Jump on US-China Deal

On Tuesday, the S&P/ASX 200 Index increased by 0.8%, reaching approximately 8,300, marking its highest point in over two months. This upward movement in Australian stocks mirrored a robust rally seen on Wall Street. The optimism was sparked by news that the United States and China have agreed to a temporary reduction in tariffs. This development has alleviated concerns over a prolonged trade war and decreased the likelihood of a global economic downturn. Given Australia's substantial export ties with China, the nation is particularly responsive to shifts in US-China trade dynamics. Concurrently, domestic figures revealed an uptick in consumer confidence in Australia during May. This improvement was buoyed by recovering financial markets and the stabilization of political uncertainty following the federal election. Leading the gains among major index players were BHP Group, which climbed 2.2%, Macquarie Group at 4.2%, CSL Ltd rising 2.4%, Fortescue Metals with a 2.3% increase, and Zip Co, which surged by 11.5%.