Markets Live: Rally pierced on renewed trade war threat

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12:23pm

Just after midday, the markets are looking similar to this morning.

The S&P/ASX 200 is still down just under 0.2 per cent, dropping 8.3 points to be sitting at 5780.5

Myer shares have jumped 6.5 per cent on the back of speculation that Woolworths is planning a takeover. The struggling department store was recently removed from the ASX 200 index.

Lithium miners Galaxy Resources and Orocobre are leading the index today driven by an increase in the price of lithium. Lithium jumped up 1.8 per cent on Thursday, an improvement of 18.4 per cent for the year.

Retail Food Group has continued its rollercoaster past few days on the market. On Wednesday it dropped 10 per cent before recovering 10.7 per cent on Thursday. It's now the worst performer on the index today, currently down 5.4 per cent.

Education company Navitas is the second worst performer on the index so far, they're down 3.9 per cent.

Blue Sky is looking slightly better than it was earlier this morning when it was down 14 per cent. It's now down 9.3 per cent.

11:38am

Here's a quick look at how the commodities are this morning.

Gold prices are continuing to rise in the face of a weaker US dollar. Gold prices have lifted right throughout the March quarter as safe haven demand increased amid the concern of a US-China trade war.

Oil prices have found support, with state-run Saudi Aramco lifting the price of its Arab Light crude oil to Asian buyers. Price growth has been capped though with rising oil stockpiles in CUshing, Oklahoma.

Base metals had rebounded on the back of easing US-China tensions although analysts are predicting that could be short lived with President Trump's announcement this morning.

Nickel and copper grew in value overnight with both rising 1.3 per cent. Aluminium also grew, rising 0.9 per cent but it remains down 4.7 per cent for the month.

11:12am

Shares of Myer Holdings are ahead today after the department store was linked to takeover speculation in an article published by The Australian.

The report says that rival David Jones, which is owned by South Africa's Woolworths, has run the ruler over Myer's numbers.

No comment from the company as yet in response. Shares of Myer were trading 6 per cent higher at 36.7¢ on Friday.

11:08am

There's been some news of the Blue Sky front.

It has emerged on Friday that Blue Sky Alternative Investments directors have been buying shares on market. Philip Hennessy purchased a further 5,000, and Michael Gordon 15,000.

Paul Masi, a director of the separately traded Blue Sky Alternatives Access Fund, acquired a further 100,000 shares in the listed investment company.

Investors are yet to be reassured though with the price of Blue Sky dropping 14 per cent this morning, down to $4.83.

10:44am

An early look at the markets now and the S&P/ASX 200 has dropped at the open.

The index has taken a dive this morning, down 0.3 per cent to 5773 after it closed at 5788.8 yesterday. The index hit a low of 5769 points earlier.

Orocobre appears to have bounced back slightly after posting a 9.5 per cent loss yesterday. It's the best performer on the index this morning, up 2.5 per cent.

Education company Navitas continues to take a hit this morning too following slowed enrolment growth. It's the worst performer on the index this morning, down 5.3 per cent.

10:08am

US stock futures have slid this morning following President Trump's announcement that the US was considering tripling trade tariffs.

S&P 500 Index futures were down 1.4 per cent on Friday morning with Asian markets poised to react. The yen climbed 0.3 per cent against the US dollar this morning, the Japanese currency a safe haven in times of uncertainty.

As at 9.22am AEST, futures on the Dow had fallen 1.8 per cent.

9:47am

The US-China trade tension has reached another escalation with President Trump threatening to triple the proposed tariffs against China.

The shock announcement takes the two nations to the brink of an all-out trade war contradicting sentiment on the markets that tensions would ease.

US stock futures have taken a big dive since the announcement.

John Kehoe has the full story here.

9:27am

Australian shares were tipped for a modest opening earlier this morning but a shock announcement from President Trump has sent US stock futures diving.

Shares in New York had closed higher, with the Dow rising 1 per cent with 25 of its 30 components in positive territory paced by DowDuPont, Boeing and Chevron. The advance was linked in part to signs that neither the US nor China is keen on a trade war per se and that negotiations to avert a trade war were proceeding.

But President Trump has heaped more fuel on the trade war fire following the close of trade, threatening to triple proposed trade tariffs against China to $US150 billion.

"Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers," Mr Trump said in a statement issued by the White House.

"In light of China's unfair retaliation, I have instructed the USTR [US Trade Repsentative] to consider whether $US100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs."

SPI futures are still up 18 points or 0.3% to 5788 at about 9.20am AEST

AUD flat at 76.88 US cents

On Wall St: Dow +1%, S&P 500 +0.7%, Nasdaq +0.5%

In New York, BHP +0.3% Rio +1.1%

In Europe: Stoxx 50 +2.7%, FTSE +2.4%, CAC +2.6%, DAX +2.9%

Spot gold -0.5% to $US1326.41 an ounce

Brent crude +0.6% to $US68.42 a barrel

US oil +0.4% to $US63.64 a barrel

Iron ore flat at $US63.57 a tonne

Chinese markets closed for a holiday

LME aluminium +0.9% to $US2009 a tonne

LME copper +1.4% to $US6816 a tonne

10-year bond yield: US 2.83%, Germany 0.52%, Australia 2.66%

9:05am

SPONSORED POST: Here's IG on today's trading.

While there is not yet a self-sustaining enthusiasm behind US equities, there is at least a little more progress. With the back and forth in headlines related to trade wars, the benchmark indices for the country put in for another positive performance. Volume behind the move – a gauge of participation and thereby conviction – was still tepid, but it nevertheless pulled us up to three-week highs. A bullish gap on the open does not absolve the massive jump down Wednesday (the largest in 17 years for the Dow), but it is a start for bulls.