The S&P ASX 200 index fell 27 points, or 0.3 per cent. The day began with optimism but turned volatile as trade worries re-emerged. Trump’s comments signaled a possible escalation in global tariffs within a fortnight, particularly with China. These fears pulled investor focus away from risk, leading to declines across some of ASX’s most influential stocks.
The mining sector saw significant losses, BHP, Fortescue, and Rio Tinto falling 1.8 per cent, 3.4 per cent, and 1.7 per cent, respectively. Investors were unsettled by the vague details surrounding a US-China trade truce announced earlier in the week. China remains a crucial player in the performance of the nation’s mining exports.
The banking sector reversed previous gains amid suspected profit-taking after reaching record highs. All four major banks closed lower, with Commonwealth Bank down 0.5 per cent, NAB losing 0.2 per cent, Westpac shedding 0.8 per cent, and ANZ declining by 0.5 per cent. Investment bank Macquarie also dropped 1.6 per cent.
Despite the downturn, there were bright spots across the market. Qantas shares rose 2.1 per cent following news it would close its underperforming Jetstar Asia arm. Investors welcomed the move as a strategic reallocation of capital to boost local market share.
Gold stocks also surged as investors sought safe-haven assets amid rising geopolitical uncertainty. Northern Star Resources, Evolution Mining, and Newmont all posted gains between 1.2 and 3 per cent. The move reflected a shift in market sentiment towards defensive assets, often favoured during times of global instability.
Technology stocks outperformed the broader market, with WiseTech, Life360, and NextDC recording modest but consistent gains. Cochlear shares bounced back from an early fall to finish 0.7 per cent higher, as investors digested its forecast of declining annual revenue.
Early gains driven by a sharp rise in oil prices on Wednesday faded as Brent crude dipped back below $US69 per barrel. One of the most dramatic declines came from online luxury retailer Cettire, which plummeted over 31 per cent following concerns about the impact of new tariffs.
The market’s recent rally to record highs has been driven largely by hopes of improving trade relations. However, Trump’s fresh tariff warning served as a stark reminder that uncertainty still lingers, and investors may face more volatility ahead as the July trade deadline approaches.
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