ASX 200 Advances as U.S.-China Trade Talks Continue

By: Team Kalkine | Jun 10, 2025 | Read Time : 10 Mins

Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 rose on Tuesday, gaining 71.50 points, or 0.84%, to close at 8,587.20, marking a new 50-day high. The ASX 200 mirrored modest gains on Wall Street, where the S&P 500 edged higher amid ongoing trade negotiations between the U.S. and China. Over the past five days, the ASX 200 has climbed 2.06% and now trades just 0.33% below its 52-week high. Ten of the eleven sectors ended the session higher, led by Consumer Discretionary, which rose 1.82% for the day and 2.23% over the last five sessions.

Macro Update: International markets are focused on renewed U.S.-China trade negotiations held in London, with discussions centered on export controls. Investors are also awaiting key economic data this week, including May’s U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) releases. These reports are expected to provide fresh insights into inflation trends and the broader effects of ongoing tariff measures on price dynamics.

According to data from the Australian Bureau of Statistics (ABS), Australia’s Accommodation and Food Services sector experienced a 3.8% increase in business turnover in April, boosted by heightened consumer spending during the 10-day Easter and ANZAC Day holiday period. Additionally, the ABS reported a 1.2% rise in the total value of residential dwellings in the March quarter of 2025.

Top Market Movers: Leading the ASX 200 gains were Zip Co Limited (ASX: ZIP), up 6.39% to AUD 2.33, Mesoblast Limited (ASX: MSB), rising 6.27% to AUD 1.865, and Clarity Pharmaceuticals Ltd (ASX: CU6), increasing 6.22% to AUD 2.39. On the downside, West African Resources Ltd (ASX: WAF) fell 4.58% to AUD 2.29, Vault Minerals Ltd (ASX: VAU) dropped 4.55% to AUD 0.42, and Evolution Mining Ltd (ASX: EVN) declined 3.83% to AUD 8.55.

Commodity Update: The U.S. dollar held steady in narrow trading on Tuesday as investors stayed cautious amid ongoing U.S.-China trade talks ahead of key U.S. inflation data. Gold slipped 0.78% to $3,328.80, silver eased 0.42% to $36.64, and copper edged down 0.19% to $9,763.65. Brent crude rose 0.50% to $67.40, supported by geopolitical tensions and limited progress in U.S.-Iran nuclear discussions.

Our Stance: The recent gains in the S&P/ASX 200, supported by sector performance and consumer spending in Australia, signal resilience amid global uncertainties. Renewed U.S.-China trade negotiations and upcoming inflation data remain key factors to watch, as they will impact market sentiment and commodity prices. Despite fluctuations in commodities and ongoing geopolitical risks, rising residential property values and increased business turnover provide a stable domestic foundation. A balanced approach that captures growth opportunities while managing risks is prudent in navigating this dynamic market environment.

In its latest session, the S&P/ASX 200 Index advanced 71.50 points to close at 8,587.20, reflecting continued investor confidence. The gain was accompanied by a bullish candlestick pattern and strong trading volumes, indicating solid underlying momentum. Technically, the index remains above its 21-period Simple Moving Average (SMA), reinforcing the short-term bullish outlook. A critical resistance level lies at 8,615.40. A decisive breakout above this level could mark a stronger recovery and potentially alter market dynamics favorably. On a weekly timeframe, the index also trades above its 50-period SMA, providing a robust base for potential longer-term upside. To maintain the current momentum, clearing the 8,615.40 resistance is key. Success here could open the door for further gains and bolster overall market sentiment in the sessions ahead.

Disclaimer- This article has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine. Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate to your objectives, financial situation and needs before acting upon it. There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product. Please note past performance is neither an indicator nor a guarantee of future performance. You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice/information in this article or on the Kalkine website. Not all investments are appropriate for all people. The information in this article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its articles, newsletters and websites. All information represents our views at the date of publication and may change without notice. Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this article, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law. Please also read our Terms & Conditions and Financial Services Guide for further information. On the date of publishing this article (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures. Some of the images/music that may be used in the article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the article unless stated otherwise. The images/music that may be used in the article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary. Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.

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