AUS
NZ
UK
CA
USA
IND
Highlights
- ASX drops 1.4% as global market sentiment weakens.
- Energy and tech sectors lead the market downturn.
- Gold miners rally on record bullion prices.
The Australian sharemarket experienced a broad decline on Friday, mirroring volatility on Wall Street as investor sentiment shifted sharply due to escalating trade tensions between the United States and China. The S&P/ASX 200 Index dropped 1.4%, or 107.7 points, to 7601.9 by midday, paring back gains from Thursday’s strong rally. The All Ordinaries Index also fell 1.4%. Ten out of eleven sectors were in negative territory, with energy and technology shares among the hardest hit.
The pullback follows a rollercoaster session in the US, where major indices reversed after recent record-setting gains. The Nasdaq Composite dropped as much as 7% during the session before trimming losses to end 4.3% lower. Tesla (NASDAQ:TSLA) slipped 7.3%, while the S&P 500 and Dow Jones indices followed similar turbulent paths. US equity futures pointed to further weakness ahead.
The sharp market reversal came after the White House announced a third hike in tariff rates on Chinese imports this week, lifting the total to 145% from 125%. The move overshadowed a stronger-than-expected US inflation report for March, dampening hopes of an easing in trade tensions. Former US President Trump acknowledged potential “transition problems” linked to the tariffs, adding further uncertainty to an already fragile global outlook.
In response to the renewed risk aversion, the price of gold surged to a new record, pushing gold mining stocks higher on the ASX. Among the standout performers were Emerald Resources (ASX:EMR), De Grey Mining (ASX:DEG), and Evolution Mining (ASX:EVN), each rising over 5%.
Meanwhile, the energy sector fell sharply as Brent crude oil dropped to $US63 per barrel, extending Thursday’s losses. This weighed heavily on shares of Woodside Energy (ASX:WDS) and Santos (ASX:STO), which declined more than 3% each. Technology and financials also faced selling pressure. Commonwealth Bank (ASX:CBA) was down 0.6%, while National Australia Bank (ASX:NAB), Westpac (ASX:WBC), and Macquarie Group (ASX:MQG) each slipped more than 2%.
In company-specific news, Mayne Pharma (ASX:MYX) edged 1.1% lower after legal action in the US alleged its subsidiary breached a contract. Ramsay Health Care (ASX:RHC) fell 3.1% following the appointment of an interim CFO, as the healthcare provider continues to search for a permanent replacement.
As uncertainty over trade policy clouds the outlook, market volatility is likely to persist, with investors closely watching geopolitical developments and economic data.
