AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX dropped 1.7% amid new US tariffs.
- Major sectors like healthcare and mining saw significant declines.
- Australian dollar hits a new low since March 2020.
The Australian Securities Exchange (ASX) witnessed a downturn of 1.7% following the introduction of US President Donald Trump's new tariff measures, which he has termed "reciprocal tariffs." These include a notable 10% on Australian exports and a staggering 104% on goods from China, significantly impacting the trading dynamics as of 2pm AEST.
During the trading session, the benchmark S&P/ASX 200 index fell by 128.1 points to settle at 7,381.9, fluctuating between 1% and 2% losses. This downturn was felt across all sectors, with healthcare, materials, and energy experiencing the most notable declines. The healthcare sector, for instance, saw a 3.4% drop, significantly impacted by a sharp 5% fall in biotech leader CSL (ASX:CSL) after the announcement of a major new tariff targeting pharmaceutical imports.
The materials sector was equally hard-hit, primarily due to losses in major mining companies. Fortescue Metals Group (ASX:FMG) saw a 4.9% decline, Rio Tinto (ASX:RIO) was down 4.6%, and BHP Group (ASX:BHP) decreased by 3.3%, as iron ore futures took a hit. Additionally, smaller mining companies like Nickel Industries (ASX:NIC), Mineral Resources (ASX:MIN), and Champion Iron (ASX:CIA) each saw declines exceeding 10%.
In the energy sector, notable decreases were recorded for Santos (ASX:STO) and Woodside Energy (ASX:WPL), which fell by 3.8% and 2.8% respectively, correlating with a significant drop in oil prices to their lowest levels in over four years.
Conversely, the financial sector managed a slight uplift, thanks largely to gains by insurance groups and banks, including National Australia Bank (ASX:NAB), which rose by 1%.
On the currency front, the Australian dollar struggled, touching its lowest level since March 2020 before a slight recovery, last trading at 59.6 US cents. This decline mirrors the broader impact of the tariffs on market sentiment and economic forecasts.
Furthermore, global markets also felt the ripple effects, with Japan’s Topix and Hong Kong’s Hang Seng indices both experiencing downturns, while the Shanghai Composite index saw a marginal increase.
This complex web of market reactions underscores the far-reaching implications of trade policies and tariffs, revealing how deeply interconnected and sensitive global markets are to geopolitical developments and policy changes.
