AUS
NZ
UK
CA
USA
IND
Highlights:
The ASX declined, paring early losses, as broad tariff measures were announced on Australian exports to the US.
The technology and energy sectors led the downturn, while major iron ore miners also recorded declines.
Ansell and Cettire saw significant drops, with tariff implications affecting companies sourcing products from impacted regions.
The Australian share market closed lower following the announcement of broad tariff measures affecting exports to the United States. Initial losses were reduced, but the index still ended in negative territory. The technology and energy sectors recorded the largest declines, while major iron ore producers also fell. Eight of eleven sectors finished with losses, as market participants weighed the impact of increased tariffs on various industries.
Sector Performance
The technology sector saw the most significant losses, followed closely by energy. Major iron ore producers experienced declines, with companies in the mining and financial services space also seeing downward movement. Notable declines included Goodman Group, Macquarie Group, and Woodside Energy.
Stock Movements
Ansell recorded a significant decline following remarks that new duties on Malaysian imports could increase costs for North American sales. Cettire also fell sharply, highlighting concerns that tariff changes on European imports could impact luxury retail businesses. Meanwhile, BlueScope Steel saw gains, with an assessment that the new tariff structure could benefit domestic steel production in the US.
Ramelius Resources led gains among gold producers, with an acquisition target also seeing an upward move. The price of bullion reached record levels, attributed to the ongoing uncertainty in global trade policies.
Company Reactions to Tariffs
Breville Group reported that increased tariffs may lead to higher costs in the next financial year, with strategies being evaluated to address these changes. ARB Corporation noted that adjustments may be required due to tariffs affecting products sourced from Thailand. Lovisa identified concerns regarding product sourcing from China, India, and Thailand, as new tariff rates applied to these regions.
Fisher & Paykel mentioned that the cost structure could be affected in the upcoming years, particularly with new tariffs on New Zealand exports. Cochlear stated that it is awaiting further clarification regarding the applicability of the new tariff regime. Treasury Wine Estates assessed that the impact would be limited, as most of its earnings from the Americas division are linked to domestic US production.
Regulatory and Legal Developments
ANZ acknowledged an increase in capital requirements by regulatory authorities, alongside an agreement to address identified areas of risk management. Light & Wonder responded to legal challenges from an industry competitor, stating its intent to contest the claims. Region Group announced a share buyback, partially financed through recent asset sales, signaling capital allocation measures in response to the evolving market landscape.
