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Further gains after ASX 200 hits record high on back of US-China trade deal

Published: (Updated: ) in Australian News by .

The ASX has hit a record high this morning, with the market skyrocketing on opening over news of the US-China trade deal.

The benchmark Australian stock index has smashed past the 7,000 point level for the first time ever on a wave of investor confidence from a signed trade deal between the US and China.

The S&P/ASX200 index on Thursday gained 47 points, or 0.67 per cent, to finish at 7,041.8 points, setting a new record for a third straight day.

The broader All Ordinaries gained 45.1 points, or 0.63 per cent, to similarly set a record high of 7,158.6.

The Australian dollar was buying 69.07 US cents, up from 68.96 US cents at Wednesday's close.

President Donald Trump shakes hands with Chinese Vice Premier Liu He before signing "phase one" of a US China trade agreement.

The biggest movers in early trade include QBE, Challenger and Coles.

But Super Retail Group, which owns Supercheap Auto, Rebel Sport and BCF, slumped nearly six per cent on opening.

The trade agreement was ratified this morning, bringing an end to the trade war that began soon after Donald Trump was elected president.

"Today we take a momentous step, one that has never been taken before with China toward a future of fair and reciprocal trade with China," Mr Trump said as he signed the deal.

"Together we are righting the wrongs of the past."

ASX Exchange Centre (AAP)

The deal does not lower tariffs placed on American importers, but forces China to buy hundreds of billions in US exports.

It requires China to crack down more on digital piracy, counterfeit medicines, unlicensed software and bad faith trademarks.

Source: 9News

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