Australian markets began the trading week on a downturn, as the ASX200 fell by 1.79% to close at 8,379.4 and the All Ords shed 1.84%. This sudden turnaround, with the XJO making new highs on Friday has been triggered by recent tariff announcements from the White House, with almost all major global indexes down on the day.

US index ETFs are down heavily on the day, with the Nasdaq (QQQ’s) more than 1.75% in the red, and the Russell 2000 (IWM) down more than 2% in the early hours of pre-market trading.

Elsewhere, those to come off worst on the day include Japan’s Nikkei 225 (-2.66%), South Korea’s KOSPI (-2.52%), and the UK’s FTSE 250 (-1.96%) as the European market get’s going.

Within the S&P/ASX 200, sector-specific indices exhibited varied reactions. The Energy Index declined by 0.5%, and the Communication Services Index experienced a 0.71% drop. Further sector analyses revealed deeper impacts, with the All Ordinaries Gold Index and Utility Index both dropping by 1.37%. Consumer Staples witnessed the same 1.37% decline, indicating consumer-centric shares were not immune to the downslide.

Tariffs had been a feature of President Trump’s campaign, but markets had not been certain of the extent, and the timing. With Canada retaliating with tariffs of their own on US imports, a prolonged trade battle could continue to cause uncertainty in the days ahead.

 

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The broader economic and market reactions illustrate the sensitivity of the ASX 200 to international policy changes, emphasising the interconnected nature of global markets.

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