Major miners lift the ASX 200, break three-day losing streak after local market’s slow dip since February

A rally in the gold and iron ore price helped lift Australia’s sharemarket on Friday, snapping a three-day losing streak. The benchmark ASX 200 closed up 40 points or 0.52 per cent to 7,789 on Friday and ended the week about 2 per cent lower. This is now the fourth straight week the ASX 200 fell. The broader All Ordinaries closed up Friday, gaining 46.70 points or 0.59 per cent to 8,013.30. The Australian dollar rose 0.14 per cent and is now buying 62.94 US cents. Friday’s rebound saw the ASX exit the brief correction period which started on Thursday, as the local market had dropped by more than 10 per cent from its recent highs in mid-February. In total, eight of the 11 sectors finished the week in the green, with the mining sector leading the gains and utilities, materials, industrials, tech, health care and consumer discretionary outperforming. Gold continued its run and reached a record high as an escalation of global trade tensions left investors looking towards the safe-haven asset. Shares in gold miners soared - as Newmont jumped 5.72 per cent to $73.43, while De Grey Mining rose 3.96 per cent to $2.10 and Evolution Mining lifted 4.64 per cent to $6.76. AMP chief economist Shane Oliver said commodity prices grew as traders continue to factor in uncertainty around US trade policy. “Oil prices fell as OPEC increased supply, but metals rose (partly reflecting US buying ahead of possible tariffs) and iron ore prices also rose. Gold prices made it to a new record high due to safe haven demand and US buying ahead of possible tariffs,” Dr Oliver said. Rising iron prices also helped Australia’s three major miners with BHP rising 1.07 per cent to $38.65, Rio Tinto up 0.96 per cent to $117.10 and Fortescue surging 2.65 per cent to $16.27. Three of Australia’s big four banks closed lower, with CBA down 1.1 per cent to a four-month low at $142.36. Westpac also traded down narrowly down 0.067 per cent to $29.61 while ANZ slipped 0.18 per cent to $28.29. NAB was the only bank to finish in the green up 0.27 per cent to $33.30. While the ASX rose, Wall Street continued its slump due to US President Donald Trump’s aggressive trade policy. The Dow Jones Industrial Average dropped 1.3 per cent to close at 40,813.57, marking its fourth consecutive day of losses. The tech heavy Nasdaq Composite fell 1.96 per cent to 17,303.01, while the S & P500 entered a correction, sliding another 1.39 per cent overnight to 5,521.52 points. Capital.com senior financial market analyst Kyle Rodda said the market continued to respond to US President Donald Trump’s tariff warnings. “Threats of a 200 per cent tariff on European alcohol imports into the US rattled the markets further as the uncertainty related to the Trump administration’s erratic trade policy continues to unnerve investors,” he said. In company news, A2 Milk posted the biggest on the ASX on Friday, rallying 8.8 per cent to $8.65, after Chinese officials announced a plan to increase consumption in China. A2 Milk recently announced strong sales of its baby formula out of China when the company revealed its half year results.