AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_06_24_2025_03_45_59_650550.jpg)
Highlights
- ASX falls as tariff concerns dampen market mood
- Financial and healthcare sectors lead the decline
- Key stocks show mixed performance amid global uncertainties
Australian markets extended their losses on Wednesday following renewed concerns over trade tariffs, with investors reacting to the latest developments from the United States. The benchmark S&P/ASX 200 Index dropped 1%, shedding 75 points to 7,815.1 at the opening, with all 11 sectors trading lower.
The market decline came after the U.S. confirmed that Australia would not be exempt from 25% tariffs on steel and aluminium exports. Additionally, the White House announced potential increases in levies on Canada's steel and aluminium exports to 50%, causing further market jitters. These developments sent Wall Street tumbling overnight, leading to a ripple effect on the ASX.
Banking Sector Faces Pressure
The financial sector faced notable declines, with major banks under pressure. Commonwealth Bank (ASX:CBA) fell 1.9%, while National Australia Bank (ASX:NAB) and ANZ (ASX:ANZ) each dropped 1.8%. Westpac (ASX:WBC) also declined, shedding 1.2% in early trade.
Healthcare Stocks Lead the Downturn
The healthcare sector saw the steepest losses, retreating over 2%. Investors appeared to reduce exposure to defensive stocks as global trade uncertainties weighed on sentiment.
Mining and Energy Stocks See Mixed Movements
Rio Tinto (ASX:RIO) edged 0.9% lower after revealing plans to raise up to $9 billion in bonds to finance the acquisition of Arcadium Lithium. The miner’s strategic move is aimed at strengthening its foothold in the lithium sector amid the rising demand for battery metals.
Meanwhile, Nickel Industries (ASX:NIC) rebounded 2% after a sharp decline in the previous session, where it lost nearly 25% of its value. The recovery came despite one of its major shareholders offloading half of its stock below the market price.
Wall Street Influence and Bitcoin Surge
Overnight, Wall Street's three major indices slumped, with volatility spiking. The VIX index, a key measure of market uncertainty, surged to 29.57 before easing. The yield on the 10-year US Treasury moved lower, prompting some investors to turn towards alternative assets, including Bitcoin, which regained $82,000 after a sharp sell-off.
Tech stocks were also in focus, as Apple (NASDAQ:AAPL) saw a 2.9% decline, extending its five-day loss to 6%. However, Tesla (NASDAQ:TSLA) rebounded 3.8% after a steep 15% drop in the previous session.
Global Geopolitical Tensions Add to Market Worries
Geopolitical factors added to market unease, with the S&P 500 briefly recovering from losses after Ukraine indicated its willingness to agree to a 30-day ceasefire with Russia. However, the index reversed its gains and resumed its downward trajectory.
Looking Ahead
With continued volatility in global markets, investors remain watchful of policy developments and trade tensions. The focus will be on any potential shifts in tariff policies and how key sectors respond to changing economic conditions.
