AUS
NZ
UK
CA
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Highlights
- Banking Sub-Index Hits Lowest Since January: The Australian banking sub-index (XFJ) fell 2% to 8,959.60, its lowest level since January 21.
- Big Four Banks See Sharp Declines: The country’s major banks dropped between 1.7% and 2.5%, with National Australia Bank (NAB) suffering its worst intraday fall since mid-January.
- Trade War Concerns Trigger Sell-Off: U.S. tariffs on Canada, Mexico, and China raised fears of an escalating trade war, prompting investors to offload banking stocks.
Australian banking stocks took a hit on Monday, with the AXFJ sub-index falling 2% to 8,959.60—its lowest point since January 21. The decline pulled down the ASX 200 benchmark index (.AXJO) by 1.9%, making banking stocks among the worst-performing sectors of the session.
The sharp drop comes after the AXFJ had reached a record high in the previous session. However, growing concerns over U.S. tariffs on Canada, Mexico, and China have rattled investors, sparking a broader market sell-off. The fear of a full-blown trade war has particularly impacted the banking sector, which has been trading at high valuations this year.
Big Four Banks See Significant Losses
The "Big Four" Australian banks all posted losses, reflecting the broader market weakness:
- Commonwealth Bank of Australia (ASX:CBA), the country’s largest lender, dropped 2.2%.
- National Australia Bank (ASX:NAB), the nation’s biggest business lender, stumbled 2.5%, marking its worst intraday decline since mid-January.
- Westpac Banking Corp (ASX:WBC) and ANZ Banking Group (ASX:ANZ) also faced losses in the range of 1.7% to 2.5%.
Regional Lenders Also Under Pressure
The sell-off extended beyond the major banks, with regional lenders also seeing steep declines. Bank of Queensland (BOQ.AX) fell 3.3%, while Bendigo and Adelaide Bank (BEN.AX) dropped 2.6%, reflecting broader market uncertainty.
AXFJ Still Outperforming Broader Market in 2024
Despite the day's decline, the AXFJ index remains up 6% this year, still ahead of the ASX 200 benchmark's 4.6% gain.
