AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
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GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX experiences a decline amid global tariff developments.
- Technology and energy sectors witness notable pullbacks.
- HealthCo Healthcare & Wellness REIT sees a significant drop after rent payment issues.
The Australian stock market opened on a weaker note as global trade concerns weighed on investor sentiment. The S&P/ASX 200 dropped 0.6%, shedding 48.6 points to settle at 8197.10, positioning the index to erase its year-to-date gains for the second time in 2024. The All Ordinaries also saw a similar decline, slipping 0.6%. A broad-based downturn affected ten of the eleven market sectors, with utilities leading the losses.
The decline in Australian equities followed a sharp pullback in US markets after President Donald Trump reaffirmed his decision to proceed with higher tariffs on key trading partners. A 25% tariff on exports from Mexico and Canada, along with a 10% increase on Chinese goods, is set to take effect, causing turbulence in global markets.
Global Impact on Stocks
US stock indices faced heavy losses, with the tech-focused Nasdaq nearing a correction territory after tumbling 2.6%. In response, technology stocks on the ASX also saw significant pressure, with WiseTech (ASX:WTC) dropping 1.6% and TechnologyOne (ASX:TNE) losing 2.2%.
Commodities also took a hit, particularly iron ore, which slipped below $100 per tonne. This led to a decline in major mining stocks, including Fortescue Metals (ASX:FMG), which fell 2.8%, and BHP (ASX:BHP), which lost 1%.
In the energy sector, Brent crude prices reached their lowest level this year, falling below $72 per barrel after OPEC+ announced plans to increase production. This downturn impacted energy stocks, with Ampol (ASX:ALD) sliding 2.5% and Woodside Energy (ASX:WDS) declining 1.9%.
Key Corporate Developments
In company-specific news, Insignia (ASX:IFL) saw a 1.9% drop after declining an early request from National Australia Bank (ASX:NAB) to redeem $200 million in subordinated loans. This decision means the company will now pay a 4% coupon rate, up from 1%, increasing its financial obligations by $53.5 million.
DigiCo Infrastructure REIT (ASX:DCG) slipped 2.1%, despite receiving a positive outlook from analysts with a price target of $5.13, suggesting a potential 20% upside.
A major development in the healthcare sector saw HealthCo Healthcare & Wellness REIT (ASX:HCW) fall 4.7% after its tenant Healthscope, Australia’s second-largest private hospital operator, failed to pay rent for March on 11 facilities. The parent company, HMC Capital (ASX:HMC), also declined 1.9%.
Additionally, a wave of stocks traded ex-dividend, with Origin Energy (ASX:ORG) dropping 4.5%, dragging the utilities sector down. Furniture retailer Nick Scali (ASX:NCK) also declined 4.2% under similar conditions.
Looking Ahead
Market volatility remains high as investors digest the implications of the tariff increases and global economic uncertainty. The focus will now shift to upcoming economic data and corporate earnings reports, which may provide more clarity on market direction in the weeks ahead.
