Investor sentiment was shaken by the Reserve Bank of Australia’s unexpected decision to keep interest rates on hold, as well as escalating trade tensions led by the United States.
The S&P/ASX 200 index slipped by 52.10 points, ending the session at 8538.6. Real estate stocks declined by 1.7 per cent, with only four of the 11 industry sectors finishing in positive territory.
Gold miners bore the brunt of the downturn. Evolution Mining plunged by 7 per cent, while Newmont and Northern Star Resources also saw significant falls of 5.4 per cent and 3.4 per cent, respectively. The drop in gold stocks came amid news of Donald Trump’s plan to impose a steep 50 per cent tariff on copper. Although copper tariffs were the focus, gold appeared to be collateral damage as commodity investors reassessed risk.
Major mining companies also suffered. BHP lost 1 per cent, Rio Tinto fell 0.6 per cent, and Fortescue Metals was down 0.2 per cent. These movements reflect growing unease around the global trade environment and its impact on Australia’s resource-dependent sectors.
In contrast, energy and utilities shares provided some stability to the market. Woodside and Ampol saw modest gains, with the latter jumping 2.9 per cent. Origin Energy rose 1.7 per cent and Meridian Energy edged up 0.7 per cent. As a group, the utilities sector was the best performer of the day, climbing 1.1 per cent.
Among the major banks, only Westpac finished higher, rising by 0.7 per cent. NAB closed flat, while Commonwealth Bank and ANZ both edged lower. These figures reflected the cautious mood among financials amid uncertain global signals.
Investor caution was also reflected in the currency market, where the Australian dollar gained slightly against the US dollar, rising 0.52 per cent to US65.25¢. The uptick followed the RBA’s decision to keep rates unchanged, a move that caught many analysts by surprise.
Global markets were contending with renewed volatility stemming from President Trump’s intensifying trade policies. The announcement of a 25 per cent tariff on imports from Japan and South Korea and threats of further duties have created additional market headwinds. Some sectors, like US technology, showed resilience, while others, like banking, wavered.
Market observers noted that while key Australian stocks were softening, this could signal a healthy adjustment rather than a broader collapse. A rotation of leadership within the ASX may set the stage for more balanced growth, provided other sectors step in to offset the current laggards.
Contact Accountancy Insurance
We would love to hear from you.
About Accountancy Insurance
Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients.
Find out why.