AUS
NZ
UK
CA
USA
IND
Highlights
- ASX 200 extends losses as trade tensions escalate.
- Nine out of 11 sectors finish lower, with energy and financials taking a hit.
- Gold prices rise, boosting select mining stocks.
The Australian stock market faced another challenging session as escalating trade tensions between the United States, China, Canada, and Mexico weighed on investor sentiment. With tariffs now officially imposed and retaliatory measures announced, global equities continued to experience pressure.
Despite positive domestic economic data, the Australian Securities Exchange (ASX) struggled to gain momentum. The latest GDP figures showed a 0.6% quarterly increase in Q4 2024, with a per capita rise of 0.1%. This marked the first per capita growth since late 2022, aligning with market expectations. On an annual basis, GDP climbed to 1.3%, improving from 0.8% in the previous quarter. However, these gains were not enough to offset broader market concerns.
The S&P/ASX 200 slid further, shedding 57 points (0.7%) to close at 8,141.1, marking a fresh 20-day low. Over the past five days, the index has declined 1.21%, reflecting broader global uncertainties.
Sector-Wide Declines Weigh on the Market
Nine out of the 11 ASX sectors ended the session lower, as investor caution led to widespread declines.
- Energy posted the steepest drop, falling 1.61%, as global oil prices remained volatile amid economic uncertainty.
- Financials followed with a 1.25% decline, reflecting ongoing concerns about interest rate policies and economic stability.
- Industrials fell 1.03%, while materials dipped 0.03%, showing relative resilience compared to other sectors.
On the flip side, utilities edged up 0.18%, and information technology inched higher by 0.06%, standing out as the only gainers in an otherwise weak session.
Gold Shines Amid Market Volatility
Gold miners saw a surge in demand as investors sought safe-haven assets. Rising trade tensions contributed to a sharp increase in gold prices, with bullion surpassing US$2,915 ($4,664) per ounce. In response, select gold stocks saw notable gains:
- West African Resources (ASX:WAF) climbed 6.5% to $1.89.
- Bellevue Gold (ASX:BGL) advanced 5.15% to $1.23.
Market analysts anticipate further upside in gold prices, with State Street Global Advisors forecasting a potential rise to US$3,000 per ounce in the near term. Their latest report suggests that gold is consolidating within a higher price range, with a probability of breaking past US$3,000 in the coming months.
Looking Ahead
As the S&P/ASX 200, which tracks the top 200 companies by market capitalisation, continues to navigate economic challenges, investor focus remains on global trade developments and interest rate decisions. The index, which accounts for approximately 80% of Australia’s equity market, remains a key benchmark for institutional investors.
With trade tensions persisting and gold prices on an upward trajectory, market participants will closely monitor how these factors influence ASX movements in the days ahead.
