FX.co ★ Australian Stocks Slip from Record Closing High

On Thursday, the S&P/ASX 200 index experienced a slight decline of 0.2%, settling at approximately 8,580, after reaching a record high the previous day. This dip came as investors awaited key economic indicators, namely Australia's May trade figures and China’s services PMI data, given China's status as Australia's principal trading partner. The May Trade Balance for Australia is projected to reveal a monthly surplus of AUD 5.09 billion, which is just below April’s surplus of AUD 5.41 billion. Meanwhile, China's Caixin Services PMI for June is anticipated to slightly drop to 51 from 51.1 in May. This situation unfolds against the backdrop of escalating trade tensions, exacerbated by renewed tariff threats from President Trump and uncertainty tied to the new US-Vietnam trade deal. Additionally, there is increasing concern over attempts to exclude China from critical supply chains. On the corporate front, major Australian banks and real estate stocks saw losses due to profit-taking. Notable declines included Commonwealth Bank of Australia, down 1.7%, and Goodman Group, down 1%. In contrast, mining companies with significant exposure to Chinese exports saw their shares rise nearly 3.5%, buoyed by robust Chinese economic data and optimism regarding a possible resolution to the US-China tariff dispute.