AU Weekly Wrap | ASX 200 experiences wild swings this week; RBA says rate path uncertain amid tariff tensions

Moomoo News AU joined discussion · Apr 11 17:00

AU Weekly Wrap | ASX 200 experiences wild swings this week; RBA says rate path uncertain amid tariff tensions

Market Review

The Australian share market experienced a tumultuous week, marked by some of the most significant swings since 2020, as escalating trade tensions between the world's two largest economies intensified. $S&P/ASX 200 (.XJO.AU)$ closed the week down 0.28 per cent at 7646.5 points, reflecting the market's volatility amid growing global economic uncertainties.

Despite the overall drop, six out of 11 sectors posted gains over the week. The Information Technology sector was the top performer, rising 6.64 per cent over the past five days. Meanwhile, the Health Care and Energy sectors were the biggest losers, falling 4.27 per cent and 4.04 per cent respectively.

Macro News

Australia's Financial System Resilient Amid Market Volatility, RBA Governor Says

Australia's financial system remains robust and well-equipped to withstand external shocks, according to Reserve Bank Governor Michele Bullock, who spoke in Melbourne on Thursday. She noted that while market uncertainties are expected to continue, current volatility has not had the same severe impact as past events, such as in 2008. On the monetary policy front, Bullock emphasized that it is still too early to predict the interest rate trajectory. The Reserve Bank will continue to focus on its dual mandate of maintaining price stability and promoting full employment.

Australian Consumer Sentiment Falls 6% in April Amid Trade War Fears

The Westpac-Melbourne Institute survey released Tuesday showed the consumer sentiment index dropping 6% to 90.1 from 95.9 in March. Westpac's head of Australian macro-forecasting, Matthew Hassan, noted a sharp decline in sentiment following the U.S. announcement of reciprocal tariffs on April 2. Respondents surveyed after the announcement reported an index reading of 86.6, nearly 10% lower than March figures.

Australia Rejects China's Call for Alliance Against U.S. Tariffs

Australia has rejected a proposal from China to join forces against U.S. tariffs, according to Deputy Prime Minister Richard Marles in an interview with Sky News, as reported by Reuters on Thursday. The rebuff comes as Australia seeks to diversify its international trade and reduce its dependence on China. Chinese Ambassador to Australia, Xiao Qian, had urged the Australian government and the international community to "join hands" with Beijing in defending global trade, in an opinion piece published in The Age. This call for collaboration followed U.S. President Donald Trump's announcement of an increase in tariffs on Chinese goods from 104% to 125%.

Company News

Westpac Expands Regional Presence with Three New Service Centers

$Westpac Banking Corp (WBC.AU)$ announced Thursday its plans to bolster its presence in regional Australia by opening three new banking service centers.The centers will be located in Moree, New South Wales,set toopen later this year, and in Leongatha, Victoria, and Smithton, Tasmania,both scheduledto open in early 2026.These facilities will offer a range of services, including face-to-face support for retail and business customers, digital banking assistance, and access to cash.

Australian Gold Miners' Shares Climb as Trade Tensions Boost Safe-Haven Demand

Australian gold miners $Ramelius Resources Ltd (RMS.AU)$, $Northern Star Resources Ltd (NST.AU)$, and $Evolution Mining Ltd (EVN.AU)$ saw their shares rise on Friday as investors sought safe-haven assets amid ongoing global trade uncertainties. The rally came as gold spot futures climbed 1.2% to $3,215 per ounce, building on an 18-month high reached the previous day. Despite the U.S. reducing tariffs to 10% for most countries, excluding China, market sentiment remains cautious. The heightened U.S.-China trade tensions have prompted a flight to safety, benefiting gold-related stocks.

Public Storage, Ki Corp Bid US$1.17B for Australia's Abacus Storage King

$Public Storage (PSA.US)$ and Ki Corporation have jointly proposed a US$1.17 billion all-cash takeover bid for Australian self-storage operator $Abacus Storage King (ASK.AU)$. The offer, announced on Monday, values Abacus at A$1.47 per share, representing a 27% premium to the company's pre-announcement stock price. The non-binding proposal is contingent on due diligence, whichis expectedtotake approximately six weeks. According to Abacus, the consortium claims that Ki already holds a significant stake in the company, with nearly 40% direct ownership and an additional 20% indirect interest. If successful, the takeover would result in Public Storage and Ki each owning 50% of Abacus Storage King.

Boss Energy JV Boosts UraniumOutputat Texas Facility

$Boss Energy Ltd (BOE.AU)$ announced on Tuesday that its joint venture partner, enCore Energy, has reported significant progress at the Texas Alta Mesa central processing plant. Between March 6 and March 31, the plant captured 50,000 pounds of uranium, with Boss Energy entitled to 30% of this production as its inventory. Boss Energy holds a 30% stake in the project, with enCore Energy owning the remaining 70%.

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