Market Wrap / Trump talks tough

Trump’s tough tariff talk weighed on Australian mining players Wednesday, however the overall market closed higher, led by tech stocks after the US President announced a joint venture to fund AI infrastructure.

The S&P/ASX200 gained 0.3% to close at 8429.80 points. 

The tech sector rose 2.4% with WiseTech up 2.9%.

The materials space fell 0.9% as Trump suggested a 10% tariff on China, to be implemented from February 1st. BHP shares fell 2% while Fortescue was down 1.8%.Iluka Resources was among the worst performers as it guided to higher production costs this year. 

Uranium producers Paladin and Boss Energy topped the charts with both stocks gaining around 10%, after Trump signalled he would move to impose tariffs on Canada; America's largest foreign supplier of uranium.

Gains in the energy space were marred by Woodside's 1.9% loss after the company reported lower 2024 revenue. Woodside has also backed away from plans for hydrogen and concentrated solar projects in the United States.

The major banks closed in the green, with CBA rising 1%. HUB24 gained 3.8% on a broker upgrade. 

Elsewhere, Qantas gained 3.6% after announcing a revamp of its customer loyalty program. Customers will have to use more points to book flights on a selection of destinations. Shares in Bubs rose 22.4% after it reported a turnaround in 1H earnings.The Aussie dollar was holding around US63c. Citi has called time on the greenback's strength and has told clients one of the best ways to trade an imminent pullback in the USD is to buy the Aussie.

Overnight, Johnson & Johnson and Procter & Gamble will be among US companies reporting results. Tomorrow, local quarterly updates include Santos, Fortescue and Netwealth.