Market Wrap / trade ties

The so-called "TACO trade" has returned to the fore after US President Trump declared a 30% tariff on European and Mexican imports over the weekend. The S&P/ASX200 index seesawed during Monday's trade to finish the market lower by 0.1% to 8570.40 points. The rotation into the mining sector gained pace as iron ore prices edged closer to the key $US100 a tonne level. BHP rose by 0.9% and Rio Tinto climbed 0.6%. China's exports regained some momentum in June and imports rebounded, as exporters rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline.Elsewhere, Macquarie Technology Group rallied after its data centre arm purchased land for a new data centre campus in Sydney worth $240 million. Shares rose 9.6%. Abacus Storage King shares also rose 5.8% after the consortium of Ki Corporation and US-listed Public Storage raised its offer to $1.65 per share from $1.47 valuing the company at $2.17 billion. And DroneShield jumped 17% on its commitment to spend $13 million to expand its Australian manufacturing capabilities. Ahead this week, markets will focus on the local labour force data to gauge RBA’s future  outlook.