Australian equities have swung either side of break-even, as fresh tariff headlines fuelled investor uncertainty during morning trading.
By midday on Friday AEDT, the S&P/ASX200 recovered from early losses to rise 16.4 points, or 0.21 per cent, to 7985.4, while the broader All Ordinaries shed 15.7 points, or 0.19 per cent, to 8202.2.
“A risk-off mood continues to dominate markets following yesterday’s announcement of automobile tariffs from President Trump, with firmer estimates of recent US economic growth doing little to shake this sentiment,” Westpac economist Ryan Wells said.
Local sectors were mixed, with seven trading higher by lunchtime, led by a 0.9 per cent lift in materials stocks.
IT stocks were the worst performer on the local bourse, down 0.7 per cent and on par with a 0.5 per cent slump in the tech-heavy Nasdaq overnight.
The big four banks were mixed, with CBA down 0.2 per cent, NAB and Westpac up 0.2 per cent and 0.7 per cent and ANZ trading flat.
Iron ore giants BHP, Rio Tinto and Fortescue were up more than 0.7 per cent, but the risk-off environment helped lift gold miners Northern Star and Evolution to 3.9 per cent and 3.5 per cent gains.
The precious metal soared to a new high as markets went defensive, hitting $US3,059.30/oz.
The energy sector was trading 0.5 per cent higher, greased by a steadily increasing oil price, which reached its highest level since February amid tightening crude supplies.
Brent crude futures were trading at $US72.24 a barrel.
Coal miners pushed energy stocks higher, with Yancoal up 1.4 per cent and Whitehaven rallying 3.8 per cent after announcing a share buyback.
The Australian Competition and Consumer Commission rubber stamped a partnership between Virgin Australia and Qatar Airways, doubling flights between Australia and Doha.
Qantas investors took the news on the chin and pushed the flying kangaroo 0.4 per cent higher in early trading.
The Australian dollar is weaker against the greenback, buying 62.95 US cents, down from 63.13 US cents at 5pm on Thursday.