Global markets remain under pressure as investors digest US President Donald Trump’s ‘Liberation Day’ tariffs.
The S&P/ASX 200 tumbled a further 1.54%, or 120.7 points, to 7,739 points shortly after the opening bell on Friday (4 April) morning (AEDT).
Ten of the 11 sectors tumbled. Materials fell 0.77%, utilities dipped 0.3%, energy was down 0.24% and industrials edged back 0.14%.
ANZ Head of FX Research Mahjabeen Zaman says the tariff shock is still reverberating after the 10% baseline tariffs and the steep economy specific reciprocal tariffs announced by Trump overnight were much higher than expected.
“Following the announcements, the US’ average effective tariff rate is likely to be in the 25–30% range from around 2.5% currently,” she says.
“The tariff order also contained modification authority, allowing Trump to increase tariffs if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy trade arrangements.
“In coming days, the focus will be on how bilateral trade negotiations play out.”
With the risks of a global trade war rising, commodity markets also slumped.
The headline ANZ China Commodity Index fell 2%.
Copper dropped 3.4% overnight (AEDT) to US$9,367 ($14,815), leading the base metals sector lower as jitters set in around the US tariffs weakening demand for industrial commodities.
Energy was also impacted, with crude oil prices tumbling after the Organization of the Petroleum Exporting Countries alliance – a coalition of producers led by Saudi Arabia – vowed to increase supply by three times the planned amount in May.
Gold was not even the outlier beneficiary of the global uncertainty, slipping 1.1% overnight to US$3,105 an ounce.
However, gold miners Capricorn Metals (ASX:CMM), Gold Road Resources (ASX:GOR) and De Grey Mining (ASX:DEG) were all early risers on Friday.
Capricorn jumped 3.85% to $8.36, Gold Road advanced 1.53% to $2.97 and De Grey climbed 0.93% to $2.16.
Aluminium producer Alcoa (ASX:AAI) fell 7.75% to $43.24, oil and gas player Karoon Energy (ASX:KAR) tumbled 7.72% to $1.44 and copper producer Sandfire Resources (ASX:SFR) wiped off 7.54% to trade at $8.83 early in the session
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock