Energy stocks led the ASX 200 market sectors with a 5.77% gain last week.
Meantime, the S&P/ASX 200 Index (ASX: XJO) rose by 1.37% to finish at 8,343.7 points on Friday.
The week began with a surprise breakthrough deal between the US and China on tariffs.
Both sides agreed to reduce their tariffs on each other by 115% for 90 days.
That leaves the US with a 30% tariff on Chinese imports and China with a 10% tariff on US imports.
This gave ASX 200 shares a significant boost given the deal reduces the economic threat to our No. 1 trading partner.
Broker Macquarie released a note naming 17 ASX 200 stocks set to benefit from the US-China tariff deal.
The market also responded to new wages and unemployment data last week.
The Australian Bureau of Statistics reported a 0.9% increase in wages in the March quarter and 3.4% growth annually.
Meanwhile, the unemployment rate was steady at 4.1% in April.
Next week, all eyes will be on the Reserve Bank of Australia, which is expected to cut interest rates on Tuesday.
Eight of the 11 market sectors finished in the green last week.
Let's review what happened.
Energy shares led the ASX sectors last week
Among the major ASX 200 oil shares, Woodside Energy Group Ltd (ASX: WDS) shares lifted 7.45% to close the week at $21.92 apiece.
The Santos Ltd (ASX: STO) share price rose by 6.27% to $6.44 on Friday.
(By the way, Macquarie expects about 30% growth for Santos shares over the next year.)
Beach Energy Ltd (ASX: BPT) shares streaked 8.61% higher to $1.33.
Karoon Energy Ltd (ASX: KAR) shares gained 8.05% to $1.61.
Ampol Ltd (ASX: ALD) shares lifted 3.43% to $26.53 apiece.
The Viva Energy Group Ltd (ASX: VEA) share price closed at $1.96, up 6.52%.
According to Trading Economics, the Brent crude oil price held steady last week at about US$64 per barrel.
Optimism over the US-China tariff deal outweighed ongoing concerns about global oversupply, analysts said.
US natural gas futures fell below $3.50 per MMBtu, the lowest point in two weeks.
This was mainly due to weaker short-term demand expectations and a fall in exports.
Trading Economics analysts said:
Warmer-than-usual weather forecasts through late May are expected to limit heating demand, while mild temperatures also dampen cooling needs, reducing overall consumption.
Additionally, gas flows to LNG export terminals have declined from record levels in April, amid seasonal maintenance.
ASX 200 coal shares also enjoyed a strong week.
Whitehaven Coal Ltd (ASX: WHC) shares rose 7.75% to $5.56.
New Hope Corporation Ltd (ASX: NHC) shares lifted 3.15% to $3.93 apiece.
The Yancoal Australia Ltd (ASX: YAL) share price increased 2.59% to $5.14.
Newcastle coal futures are on the rise from a four-year low of US$93.70 per tonne on 23 April to almost US$100 per tonne now.
Trading Economics analysts said the futures price was 20% lower this year.
This was primarily due to more renewable power and lower demand for heating due to the warmer winter in China this year.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Energy (ASX: XEJ) | 5.77% |
| Information Technology (ASX: XIJ) | 5.62% |
| Materials (ASX: XMJ) | 2.55% |
| Industrials (ASX: XNJ) | 1.81% |
| Financials (ASX: XFJ) | 1.37% |
| Healthcare (ASX: XHJ) | 1.11% |
| Consumer Discretionary (ASX: XDJ) | 0.38% |
| Communication (ASX: XTJ) | 0.06% |
| A-REIT (ASX: XPJ) | (0.5%) |
| Utilities (ASX: XUJ) | (2.53%) |
| Consumer Staples (ASX: XSJ) | (3.31%) |
