Market snapshot
- ASX 200 futures: +0.4% to 8,627 points
- Australian dollar: +0.1% to 65.20 US cents
- S&P 500: +0.5% to 6,039 points
- Nasdaq: +0.6% to 19,715 points
- FTSE: +0.2% to 8,853 points
- EuroStoxx: Flat at 553 points
- Spot gold: -0.1% to $US3,323/ounce
- Brent crude: -0.7% to $US66.60/barrel
- Iron ore: +0.5% to $US95.75/tonne
- Bitcoin: Flat at $US109,968
Prices current around 7:00am AEST.
Live updates on the major ASX indices:
What Donald Trump’s ‘revenge tax’ on investors could mean for Australians
NAB’s director of SMSF and investor behaviour, Gemma Dale, explains the so-called “revenge tax” on foreign investors being proposed as part of Donald Trump’s “Big, Beautiful Bill”.
It is formally known as Section 899 and, as currently drafted, would allow the US to hike taxes for countries with “unfair foreign taxes” by 5% per year, capped at 20%.
Some examples of “unfair taxes” include a diverted profits tax, which Australia has implemented in its efforts to clamp down on multinational tax avoidance, including by large US firms.
As it stands the taxes don’t apply to US Treasuries or portfolio interest but, as Ms Dale explained on The Business, the measure is yet another cause of uncertainty and worry about investing in the US.
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Wall St edges higher as traders bet on positive outcome from US-China trade talks
Good morning, I’ll be taking you through the morning on what’s been another generally positive day for markets overnight.
Major US share indices have climbed higher, as the country’s commerce secretary Howard Lutnick said trade talks with China were going “really, really well” and he was hopeful they’d be concluded later today.
The current talks are mainly focused on easing export controls that threaten to cripple key industries in both countries, with China holding back rare earths and the US restricting semiconductors.
But many share traders are optimistic that, over the medium term, the world’s two biggest economies will strike a deal to keep tariffs at manageable levels.
“The expectation is that they’ll figure this out, and that the Liberation Day tariff levels are never going to be seen,” Scott Ladner, chief investment officer at Horizon Investments, told Reuters.
“You can’t get to market valuations where we’ve got them and have those tariff levels get anywhere close to reality.”
That last statement is one that most analysts can agree on, although many remain sceptical that tariff rates will drop back as far as markets seem to be betting.
US investors weren’t holding back, with the S&P 500 index up 0.5% and the tech-heavy Nasdaq up more than 0.6%, with Tesla shares gaining 5.7% as it recovers some of its recent massive sell-off.
We’ll bring you the latest updates from the US-China talks as we see them, and all the other key events from the markets and business news.
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