Stocks on Wall Street were stronger as US steel and aluminium producers climbed on the prospect of tariffs being imposed on rival foreign products.
The S&P 500 index was up 0.6% at 6am in Auckland, while the Nasdaq advanced 1.1% as tech stocks were generally stronger after Taiwan Semiconductor Manufacturing said revenue gained in January, and as Meta Platforms embarked on plans to lay off 5% of its workforce.
Shares of Cleveland-Cliffs, Nucor Corp, US Steel Corp and Alcoa rallied as investors prepare for the next round of tariffs from US President Donald Trump, who signalled plans to impose a 25% tariff on imports of steel and aluminium products.
Asian markets were mixed on the news on Monday, while New Zealand steel firms Vulcan Steel and Steel & Tube Holdings were both softer. Vulcan kicks off the domestic earnings season when it reports later today.
The greenback was broadly stronger as reports of the new tariff front emerged, with the kiwi trading at 56.50 US cents at 6am in Auckland from 56.52 cents yesterday.
Australian lobbying
The New Zealand dollar slipped to 90 Australian cents from 90.18 cents, with Australian prime minister Anthony Albanese seeking to use his first call with Trump to carve Australian products from the levy, as his predecessor Malcolm Turnbull had done in 2018.
“Australia is mostly a by-stander here compared to Canada,” Westpac head of FX strategy Richard Franulovich said in a note. “Canada accounts for about 40% of US aluminium imports and 25% of steel imports, so a rebound for AUD/USD makes some sense.”
The ongoing tariff uncertainty pushed up gold prices, with gold futures up 1.4% at US$2,927 an ounce, and underpinning gains among mining companies on Canada’s TSX.
New Zealand’s Sanatana Minerals was a beneficiary of the rising gold price on Monday.
Meanwhile, BP rallied at the start of the week after it emerged activist investor Elliott Management has taken a stake in the global oil giant and plans to push for more dramatic change, while McDonald’s gained as it noted improving international markets, even as its December quarter earnings missed expectations.
There’s no local data today, although domestic political uncertainty is growing as strains in the coalition government emerge with the latest polling showing dwindling support for the National-led administration.
And general insurer Tower holds its annual meeting in Auckland today, in the swansong of chief executive Blair Turnbull.
Reporting by Paul McBeth. Image from the blowup on Unsplash.
