AUS
NZ
UK
CA
USA
IND
Highlights
- ASX sheds 1.31% following tariff hikes on Canadian metals
- Commodities gain ground amid weaker US dollar and risk appetite
- Mining stocks lead early movers, with notable shifts in uranium and nickel sectors
The Australian Securities Exchange (ASX) continued its downward trajectory, with the S&P/ASX 200 dropping 1.31% on March 12. The index fell 103.1 points, settling at 7,787 by 10:30 AM AEDT. Market sentiment took a hit following the latest tariff measures announced by US President Donald Trump, which will see duties on Canadian steel and aluminium double to 50%. Nine out of 11 sectors were in negative territory at market open, reflecting broader concerns over escalating trade tensions.
Tariff Concerns Weigh on Market Sentiment
The latest tariffs are in response to Ontario’s imposition of a 25% tariff on electricity exports to the US. According to ANZ Pacific Economist Kishti Sen, these electricity tariffs are expected to push up prices in New York, Michigan, and Minnesota. In reaction, President Trump signaled a potential national emergency on electricity in the affected regions. Additionally, further tariff increases targeting Canadian automobiles could be introduced on April 2 if Ontario does not revise its policies.
Commodity Markets React to Trade Developments
Despite market declines, commodities found support due to a weaker US dollar and improved risk appetite. Copper rose 1.4% overnight to US$9,663 per tonne, while zinc climbed 2% to US$2,913 per tonne. Gold continued to attract safe-haven demand, gaining 0.8% to US$2,921 an ounce amid concerns of a global trade war and increasing discussions around a potential US recession.
Mining Stocks Lead Market Moves
Uranium explorer Deep Yellow (ASX:DYL) saw a 4.79% rise to $0.99, positioning itself as one of the top early movers. Nickel Industries (ASX:NIC) also rebounded, climbing 3.31% to $0.625, following further clarification regarding Indonesia’s proposed royalty increases on mining operations.
Currently, Nickel Industries pays a 10% royalty on nickel ore sales. The proposed rate, set between 14% and 19%, is contingent on market pricing. Based on the Hengjaya Mine’s projected revenue of US$205 million in 2024, a potential royalty hike could increase payments by US$8 million. However, the company clarified that public consultation on these changes is expected to take three to six months, and there is no certainty of implementation.
Gold Miners Maintain Momentum
Several gold stocks saw upward movement in early trading, including Regis Resources (ASX:RRL), Westgold Resources (ASX:WGX), and Perseus Mining (ASX:PRU). The performance of these miners reflects continued interest in gold as a hedge against economic uncertainty.
Broader Market Outlook
The S&P/ASX 200 represents the top 200 ASX-listed companies by market capitalisation and accounts for nearly 80% of the country’s equity market. While ongoing trade tensions introduce uncertainty, commodity strength and evolving policy developments will be key factors shaping market direction in the coming weeks.
