AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlight Points:
- ASX 200 Falls: The index dropped 1.1% to 8,151.4 points, with all sectors in the red.
- Trade Tensions: U.S. tariffs on Canada and Mexico and iron ore price declines hit miners and global trade-exposed sectors.
- Energy Slumps: Energy stocks fell 2.5%, the sharpest drop in over 3 months, as OPEC+ output increases and demand concerns weighed on oil prices.
Australian shares fell sharply on Tuesday, with all sectors in negative territory as global trade tensions and domestic economic uncertainties dampened investor sentiment. Traders are closely watching upcoming retail sales data and the minutes from the Reserve Bank of Australia’s (RBA) latest meeting for further cues on interest rates.
The S&P/ASX 200 index (.AXJO) dropped 1.1% to 8,151.4 points by 11:53 GMT, reversing the 0.9% gain from the previous session.
Global Trade Pressures Hit Sentiment
Markets reacted to rising trade concerns after U.S. President Donald Trump announced 25% tariffs on Canada and Mexico, set to take effect on Tuesday. The announcement sent Wall Street stocks tumbling, with ripple effects reaching Australian markets, particularly in trade-exposed sectors like mining and energy.
Locally, investors are awaiting January retail sales data and the RBA meeting minutes, both due later in the day, for insights into the country’s economic outlook and potential future interest rate moves.
Broad-Based Sector Declines
- Financials: The financial sector (.AXEJ) lost 1.2%, with the 'big four' banks declining between 0.1% and 0.9%, as uncertainty around interest rates clouded the sector’s outlook.
- Miners: Mining stocks (.AXMM) fell 1.3%, with giants BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) both down 1% as iron ore futures dropped amid rising tensions between the U.S. and China.
- Energy: The energy sector (.AXEJ) plunged 2.5%, set for its biggest one-day drop in over three months, as reports suggested OPEC+ will proceed with an April output increase. Concerns over U.S. tariffs potentially hurting global oil demand added to the pressure. Woodside Energy (ASX:WDS) fell 2.3%, while Santos (ASX:STO) slid 2.4%.
- Technology: Tech stocks (.AXIJ) dropped 1.6%, mirroring losses in U.S. tech peers, as investors steered away from high-risk growth stocks amid broader market uncertainty.
New Zealand Markets Also Slide
Across the Tasman Sea, New Zealand’s S&P/NZX 50 index (.NZ50) fell 1% to 12,426.47 points, reflecting the bearish sentiment in regional markets.
With macroeconomic concerns mounting and investors seeking clarity on both domestic monetary policy and global trade relations, markets are likely to remain volatile as they digest upcoming economic data and policy signals.
