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The Australian share market surged to a six-week high on Tuesday, buoyed by optimism following Donald Trump’s assumption of office. The S&P/ASX 200 climbed 55 points, or 0.66%, to close at 8,402.4, its highest finish since December 9. The broader All Ordinaries index gained 58.3 points, or 0.68%, finishing at 8,652.7.

Trump indicated he might impose tariffs on Canada and Mexico. His comments, made during a press briefing from behind the Oval Office’s Resolute Desk, rattled markets temporarily.

“We're thinking in terms of 25 per cent (tariffs) on Mexico and Canada, because they're allowing vast numbers of people into the country,” Trump stated, adding, “I think we'll do it February 1.”

This announcement briefly sent tremors through both the ASX and the Australian dollar. However, both had largely recovered. At one point, the Aussie had hit a high of 62.80 US cents—the strongest level against the greenback since January 7—before Trump’s tariff remarks.

Sector Movements

On the ASX, six of the 11 sectors finished higher, while four closed lower. The financial sector was the standout performer, rising 1.3%. All four major banks recorded gains: Westpac added 1.4% to $32.74, NAB rose 2.1% to $38.87, ANZ climbed 2.0% to $30.15, and CBA increased by 0.7% to $156.20.

The mining sector also saw positive movement, up 0.9%. BHP gained 0.9% to $40.61, Fortescue added 1.1% to $19.37, and Rio Tinto rose 0.4% to $120.61. Gold miners, supported by a near six-week high in gold prices, saw strong performances as well. Gold was trading at $2,726 per ounce, up from under $2,700 last week. Northern Star rose 1.6%, Evolution gained 2.2%, and Regis Resources climbed 3.4%.

The tech sector remained mostly flat, while the utilities sector was the biggest loser, dropping 1.6%. Origin Energy fell 2.3%, and AGL dropped 1.4%.

Notable Performers

Lithium developer Liontown Resources was the top performer on the ASX 200, surging 11.9% to a seven-week high of 70.5 cents.

Wesfarmers also saw a positive movement, rising 1.6% to $72.88 after announcing it would shut down its underperforming e-commerce unit, Catch.com.au. The move comes after the company struggled to compete with other players in the Australian e-commerce market following its $230 million acquisition in 2019.

Global Markets

Globally, the NZX 50 saw a decline, losing 35.41 points (-0.27%) to close at 13,052.90, while the Nikkei 225 gained 125.48 points (0.32%) to finish at 39,027.98.

Overall, while the Australian share market is trending on a positive note, the brief volatility sparked by Trump’s remarks reminded investors that the year ahead could bring continued uncertainties and market fluctuations.