Investors are shying away from markets ahead of the planned announcements around the implementation of US tariffs next week.
Major markets in the US and Europe fell overnight, and the Australian Securities Exchange (ASX) started the session lower on Thursday (27 March).
The S&P/ASX 200 gave back a chunk of yesterday’s gains, sliding 39.8 points, or 0.5%, to 7,959.2 points as of 10.30am AEDT.
The index is still up 0.51% over the past five days, but sits 2.45% below where it was at the start of the year.
All 11 sectors started the day in the red. Utilities stumbled 0.28%, industrials dropped 0.22% and materials edged down 0.08%.
Takeover target Gold Road Resources (ASX:GOR) gained more ground, rising 3.55% to $2.92. Fellow gold miner Westgold Resources (ASX:WGX) advanced 1.42% to $2.85 and uranium hopeful Deep Yellow (ASX:DYL) climbed 1.89% to $1.08.
Capstone Copper (ASX:CSC), however, fell 4.55% to $9.24.
ANZ Head of Australian Economics Adam Boyton says gold steadied near a record high amid tariff uncertainty.
“This is despite easing geopolitical tensions,” he says.
“Earlier this week the US announced that Russia and Ukraine had reached a ceasefire deal in the Black Sea. However, the rapidly changing geopolitical landscape is likely to keep investors nervous.”
The US trade review is slated to be completed on 1 April, which also has investors on edge.
“There is some chatter that the date of announcements could shift. But until clarity emerges on the magnitude and scope of tariffs and their implementation, risk appetite is likely to remain muted,” Boyton notes.
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 & iStock
