Aussie equities push lower as tariff threat returns
The Australian share market has pulled back from the previous week’s record high as investors weighed the latest developments in the Trump tariff saga.
The S&P/ASX200 fell 55.4 points, or 0.61 per cent, to 9,026 points on Monday, while the All Ordinaries fell 51.7 points, or 0.56 per cent, to 9,251.5 points.
Gold miners were a lone success story, helping the basic material sector rise 1.2 per cent as US President Donald Trump sought safe haven after threatening to raise global tariffs to 15 per cent after a US court ruled against previous tariffs.
IG Market analyst Tony Sycamore said while local markets were off to a shaky start, the impacts on the Australian economy should be minor.
“Given that we don’t have a huge export sector to the US, it doesn’t really impact our GDP (gross domestic product) that much,” he told AAP.
“This is not a toxic outcome for the Australian stock market or the net network of Australian exporters and could actually be a boon because China, where most of our exports go, has come out of this with a lower effective duty rate.”
Only three out of 11 domestic sectors finished the session higher, driven by a 1.5 percent rise in basic materials as investors turned to gold stocks.
Spot gold is buying at US$5,156 ($7,294) an ounce, supporting names like Evolution Mining and Northern Star, which are each gaining 3.5 per cent.
The iron ore giants were in a mixed bag; BHP rose to its best-ever closing price of $54.02, while Rio Tinto and Fortescue were left behind.
Lynas Rare Earths rose ahead of its earnings update at the weekend, with lithium producers Liontown and PLS gaining more than three percent each.
Financials fell 1.2 per cent as all four banks were sold, driven by a 2.3 per cent decline in ANZ shares.
Commonwealth Bank lost 0.6 percent to $178.53 but retained most of its latest earnings season gains.
Energy stocks lost 1.7 percent despite oil prices remaining near recent highs as tensions between Iran and the United States continue.
Coal producers are also in the red, while uranium stocks have gone into profit selling after the previous week’s strong performance.
Ampol shares lost more than two per cent as its first-half statutory net profit after tax fell by roughly a third (equivalently halved) to $82.4 million.
IT shares were the worst-performing segment, falling 4.6 percent, despite Wall Street’s positive lead on Friday as concerns emerged about AI disruption at software companies.
Health services were also under pressure; The sector lost 2.4 percent as CSL fell to its lowest price in more than six years.
The slide came despite strong earnings and guidance from Fisher and Paykel Healthcare (up 4.0 percent) and Regis Healthcare (up 7.6 percent).
Consumer cyclical stocks lost nearly 1.8 percent in a broad-based decline that overshadowed positive earnings reports from Kogan (up 5.5 percent) and Adairs (up 10.5 percent).
Looking ahead, earnings season continues with Woolworths and Nine Entertainment among companies reporting on Tuesday, with Fortescue, Yancoal, Domino’s and Qantas set to follow later in the week.
The Australian dollar is buying 70.74 US cents at 70.43 US cents as of Friday afternoon.
January inflation figures are released on Wednesday and any upward surprise in price growth could significantly increase the chances of a Central Bank interest rate cut in March.
ON ASX:
* S&P/ASX200 fell 55.4 points or 0.61 percent to 9,026 points
* More broadly, All Ordinaries lost 51.7 points, or 0.56 percent, to 9,251.5 points
CURRENCY DISPLAY:
One Australian dollar is traded as follows:
*70.74 US cents, down from 70.43 US cents at 5pm AEDT on Friday
* From 109.37 JPY to 109.25 JPY
* 59.84 euro cents from 59.92 euro cents
* 52.32 British pence, from 52.38 British pence
* 118.19 New Zealand cents from 118.3 New Zealand cents
