ASX lifts as banks rally amid easing trade tensions

The Australian share market ended a two-day losing streak on Monday, buoyed by renewed optimism following a trade agreement between the United States and the European Union and expectations that the US-China tariff truce may be extended. The S&P/ASX 200 Index rose by 30.8 points, or 0.4 per cent, to close at 8697.7, while the All Ordinaries Index added 0.3 per cent. Financial stocks led the gains, particularly Commonwealth Bank of Australia (ASX: CBA), which climbed 1.2 per cent to $174.90. Meanwhile, National Australia Bank Limited (ASX: NAB), Westpac Banking Corporation (ASX: WBC), and Australia and New Zealand Banking Group Limited (ASX: ANZ) posted more modest increases.

Resource and lithium sectors drag despite travel and tech gains

Offsetting the gains in financials were declines in resource and energy stocks. Whitehaven Coal Limited (ASX: WHC) and Yancoal Australia Ltd (ASX: YAL) fell sharply after a court overturned a 2022 coal project approval in the Hunter Valley. Uranium miner Boss Energy Limited (ASX: BOE) plummeted 44 per cent following operational concerns at its Honeymoon project. Iron ore giants such as Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Ltd (ASX: FMG), and BHP Group Limited (ASX: BHP) also retreated as futures weakened. Lithium producers including Pilbara Minerals Limited (ASX: PLS) and Liontown Resources Limited (ASX: LTR) suffered significant losses amid falling lithium prices in China. On a brighter note, Helloworld Travel Limited (ASX: HLO) surged 14.1 per cent after lifting earnings guidance, while Stealth Global Holdings Ltd (ASX: SGI) and Bubs Australia Limited (ASX: BUB) also posted strong gains on positive corporate developments.

Global markets steady as investors eye earnings and Fed decision

In global markets, US stocks were relatively unchanged on Monday as investors processed the new US-EU trade agreement and anticipated a busy week of earnings and economic updates. The S&P 500 Index edged higher to another record, the Nasdaq 100 Index added 0.3 per cent, while the Dow Jones Industrial Average slipped by 64 points. Energy stocks led gains with Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) rising, whereas materials stocks underperformed. Market sentiment remained cautious, with focus turning to earnings results from Meta Platforms Inc. (NASDAQ: META), Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), and Amazon.com Inc. (NASDAQ: AMZN). Investors are also closely watching the US Federal Reserve’s policy meeting on Wednesday for potential clues on a September rate cut.