Concerns that US President-elect Donald Trump’s proposed tariffs on several countries including China could ignite inflation have prompted a retreat in markets.
The S&P/ASX 200 dropped 30.1 points, or 0.36%, to 8,265.9 points as of 10:32am AEDT on Monday.
ANZ economists say industrial metals came under renewed pressure last week as investors weighed China’s stimulus against the prospect of the US Federal Reserve pausing its interest rate cuts in January.
“However, optimism around China’s industrial recovery looks intact, encouraging the ongoing restocking of materials,” economists Sophia Angala, Brian Martin, and Daniel Hynes say.
The S&P/ASX 200 has lost 1.84% over the last five days, and sits 2.92% below its 52-week high. Eight of the 11 sectors were lower in early trade. Materials dipped 0.81%, energy edged back 0.04% and industrials was down 0.03%.
Uranium miners Boss Energy (ASX:BOE) and Paladin Energy (ASX:PDN) slipped 5.36% and 5.28%, respectively, while gold miners Vault Minerals (ASX:VAU) and West African Resources (ASX:WAF) retreated 4.67% and 4.52%.
The S&P/ASX 200 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 & iStock
