Wall Street recovery after a volatile week
Wall Street staged a partial recovery on Friday after a chaotic few days triggered by shifting tariff policies. The S&P 500 ended the week with a 0.6% gain, while the Nasdaq rebounded 0.7% after briefly entering correction territory. However, uncertainty remains, with US President Donald Trump declining to rule out a recession over the weekend. Meanwhile, bond markets firmed as investors sought safer assets.
Trade tensions fuel ongoing market instability
Trade policy continues to drive volatility. Last week, the White House first announced tariffs on Canadian and Mexican imports, only to reverse course days later, granting exemptions to most products. Now, fresh concerns are emerging as new tariffs on Australian steel and aluminum exports to the US are set to take effect on Wednesday. The Albanese government is lobbying for an exemption, but so far, no decision has been made.
Oil prices slide amid global uncertainty
The uncertainty has weighed on commodities. Oil prices posted their seventh straight weekly decline amid concerns over global demand and speculation of a temporary truce in Ukraine that could see Russian exports resume.
ASX set to rebound despite pressures on iron ore
In Australia, the ASX 200 is set to open higher after closing at a six-month low on Friday. Futures point to a 69-point gain, or 0.9%, lifting the index back above 8000. Traders are watching the iron ore sector closely, as China considers further cuts to steel production.
Stocks to watch
Among key stocks, BHP has signed a $40m exploration deal with copper-silver explorer Cobre in Botswana. Meanwhile, billionaire Gerry Harvey has taken a major stake in Mayur Resources, which is developing a lime extraction project for PNG and Australian markets.
