On March 14, 2025, the S&P/ASX 200 Index closed higher by 40.6 points, marking a rise of 0.52% to settle at 7,789.7. This notable increase came as the index broke its three-day losing streak, providing investors with much-needed optimism. Despite this positive development, the index ended the week about 2% lower, illustrating the volatile nature of the market.
The rally was driven primarily by the performance of the mining sector, particularly gold and iron ore stocks. On this day, gold prices hit record highs, reaching $2,990.02 per ounce, spurred by investors seeking safe havens amid increased global trade uncertainties. This surge was reflected by renewed interest from major mining stocks, with Newmont Corporation leading the charge, increasing 5.72% to $73.43.
BHP and Fortescue, two of the largest miners, also saw significant gains, closing at $38.65 and $16.27, up 1.1% and 2.7% respectively. According to Shane Oliver, AMP Chief Economist, “Commodity prices grew as traders continue to factor in uncertainty around U.S. trade policy.”
The positive sentiment spread each week, as the ASX 200 index had been experiencing declines since the mid-February highs. Earlier this week, the index had fallen by over 10%, prompting concerns about broader economic conditions. Indeed, the All Ordinaries Index recorded similar gains, closing up 46.70 points or 0.59% at 8,013.30 on March 14.
Despite this rise, the energy sector lagged behind with the S&P/ASX 200 Energy Index dipping 0.43%, reflecting the overall pressure as analysts downgraded coal companies, particularly highlighting Whitehaven Coal and New Hope Corporation.
Meanwhile, the financials closed mixed, with three of the big four banks ending lower. Commonwealth Bank saw the steepest decline, dropping 1.1% to $142.36, marking its lowest price point since November. Westpac also fell slightly, down 0.067%, and ANZ dropped 0.18%. Only NAB managed to gain, climbing 0.27% to $33.30.
Notably among ASX-listed companies, A2 Milk saw the largest increase of the trading day, rising 8.8% to $8.65. This surge followed news from Chinese officials planning measures to boost consumption, which bodes well for the company's baby formula sales, particularly as demand has escalated significantly over the past year. This optimism surrounding A2 Milk appears based on its recent quarterly performance data showing increased revenue.
The day's upward momentum showcases the counter-acting effect of positive local movements against the background of Wall Street's continuing struggle. The Dow Jones Industrial Average fell by 1.3% amid U.S. trade tensions, particularly following President Donald Trump's tariff announcements, threatening to upend trade flows between the U.S. and Europe.
The Nasdaq Composite fared even worse, with declines reaching as much as 1.96%. The international concerns create additional pressure on the ASX, making the day's performance especially noteworthy against greater volatility.
The commodity market reflects these shifting dynamics, with many investors shifting focus to precious metals as they seek stability during uncertain economic times. Macquarie has suggested several adjustments on stocks across the resources sector. They upgraded price targets for numerous companies following detailed analyses of 46 resource stocks, indicating sector-wide optimism.
Overall, Friday's trading showed a clear divergence between local and international sentiment; traders remain cautious yet optimistic, buoyed by the strong performance of gold and the resilience shown by other commodities this trading session.
Looking forwards, analysts will be keeping a close eye on how international tariff discussions develop and what additional economic data will emerge. With consumer sentiment data expected soon, investors are eager for insight on future market sentiment trends.
Considering the ASX's recovery performance alongside international tensions and trade policies, the market may experience new fluctuations as these issues evolve. The next week will be pivotal as investors assess their positions and strategies, emphasizing the importance of staying informed with economic developments.