The S&P / ASX 200 (ASX: XJO) is 1.4% higher at 5,746 points in mid-morning trade today after news broke from the G20 conference of world leaders in Argentina that the US and China had agreed on a de-escalation to the trade dispute between the two superpowers. This outcome has sent a number of well-known ASX shares shooting far higher than the market. So let's take a look at why.
The Fortescue Metals Group Limited (ASX: FMG) share price is up 4.5% to $4.18 as investors bet that an ending of the trade dispute and tariffs between the US and China could send the iron ore price higher. It's the key steel-making ingredient used in all construction projects and demand for the red metal tends to rise when China's growth is strongest. Recently its chairman Andrew Forrest also spent $23 million on shares, which suggests he's very confident in the group's future.
The Graincorp Ltd (ASX: GNC) share price is up a huge 27% to $9.25 this morning after the grain retailer revealed it was the subject of a takeover offer at $10.42 per share from Long Term Asset Partners Pty Ltd. The shares are probably trading at a big discount to the offer price as the federal government previously blocked a 2013 takeover bid from US business Archer Daniels Midland. This time though the takeover bidders are described as "Australian investors".
The Santos Ltd (ASX: STO) share price is 5.4% higher at $5.82 after the LNG giant reported that it was delivering "first gas" from its Bayu Undan infill well program after completing the Timor Sea-based offshore project on time and 40% below budget. Santos holds an 11.5% interest in the project which is operated under the terms of a joint venture by ConocoPhillips.
The Bellamy's Australia Ltd (ASX: BAL) share price is 7% higher to $7.83 despite the organic infant formula retailer releasing no specific news to the market. Its rival the a2 Milk Company Ltd (ASX: A2M) did update investors over progress on new cross-border e-commerce rules for selling into China today, and investors might be taking heart from this news.
