The increasing prospect that US President Donald Trump’s tariffs could sink the country into recession flowed through to Australian markets on Tuesday (11 March).
Trump has again upset markets after refusing to rule out the possibility his tariff policies could tip the US economy into recession and spark inflation, according to a News.com.au report.
“I hate to predict things like that,” Trump reportedly said.
“There is a period of transition because what we’re doing is very big.
“We’re bringing wealth back to America. That’s a big thing and there are always periods of, it takes a little time. It takes a little time.”
The S&P/ASX 200 hit a new 100-day low, tumbling 72.2 points, or 0.91%, to 7,890.1 points.
The bourse wiped off about $50 billion early in the session, but managed to stem some of its losses by the closing bell. The index has retreated 3.76% in the last five days and is down 2.41% over the past year.
Eight of the 11 sectors ended in the red. Industrials slid 1.79% and materials dropped 0.42%.
Utilities was the best performing sector, gaining 1.57% on Tuesday and rebounding from its recent decline. The sector is down 0.87% over the past five days. Energy advanced 0.86%.
Nickel Industries (ASX:NIC) took a hit on news the Indonesian Government is proposing to increase royalties for miners across multiple commodities, including nickel. Shares plunged 19.87% to $0.61.
The current royalty rate on nickel ore is 10%, while the proposed royalty range for public consultation is 14-19%, depending on the prevailing nickel price at the time.
Nickel Industries says based on the information released, the proposed royalty would be 14% at the current nickel price.
Meanwhile, Ramelius Resources (ASX:RMS) retreated 17.21% to $2.31 after outlining its new mine plan for its Mt Magnet operation.
The plan now envisages production of 2.1 million ounces over a 17-year period, with ongoing exploration focused on extending high-grade sources further.
Managing Director Mark Zeptner says the combination of the updated Mt Magnet mine plan and the Rebecca-Roe Gold Project has increased Ramelius’ consolidated gold production profile from FY26 to FY35 at an average annual production of 244,000 ounces per annum at an all-in sustaining cost below $2,100 per ounce.
The coal miners, however, escaped the drag of the broader market, with New Hope (ASX:NHC) gaining 3.24% to $4.14, Yancoal Australia (ASX:YAL) advancing 2.96% to $6.27 and Whitehaven Coal (ASX:WHC) up 2.2% to close at $6.03.
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
