Australian shares shoot up after Trump walks back tariff threat

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Jonathan Barrett Business editorJanuary 22, 2026 at 04:42 AM

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Australian shares rose on Thursday, recovering recent losses after Donald Trump eased tariff threats against European allies amid a Greenland negotiation. The S&P/ASX 200 briefly surpassed 8,860 points, mirroring a global sharemarket rally fueled by Trump's de-escalation. Analysts suggest investors are employing a strategy anticipating Trump will back down from tariff threats. Despite the positive market response, some experts caution that geopolitical tensions and potential US bond sell-offs could trigger a correction. Australia's commodity-driven market benefits from strong iron ore demand and high gold/copper prices, but inflation and potential interest rate hikes may limit gains.

Key Entities & Roles

Key Player Opposition Context

Sky News 30% Pepperstone 30% Moomoo 30% Denmark 40% Sascha Faxe ×240% Chris Weston ×240% Michael McCarthy ×250% Europe ×250% S&P/ASX 200 60% Australia ×270% Greenland ×570% Donald Trump ×690%

Keywords

tariff threat 90% donald trump 90% australian shares 80% share market rally 70% greenland deal 70% commodity prices 60% geopolitical tension 60% us bonds 50% interest rate hike 50%

Sentiment Analysis

Positive

Score: 0.30

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The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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tariff threat donald trump australian shares share market rally greenland deal commodity prices geopolitical tension us bonds interest rate hike

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