The S&P/ASX 200 has witnessed its worst Q1 since the COVID pandemic hit markets in 2020 after wiping off more than $40 billion over the course of the trading session on Monday (31 March).
The index tumbled 138.6 points, or 1.74%, to 7,843.4 points, with all sectors remaining in the red by the closing bell.
The S&P/ASX 200 has lost 1.11% over the past five days and is down 0.68% in the past year. Today’s loss pushed the index down 3.9% for the first quarter.
Materials plunged 3.35%, energy fell 2.68% and industrials slid 1.28%. The least hit was the financial sector, which closed 1.03% lower but is up 1.49% over the last five trading sessions.
The S&P/ASX 200 Volatility Index (A-VIX) surged 27.52% to 14.86 points. The index has climbed 17.95% in the past five days and has spiked 31.36% year to date.
Also known as the ‘fear’ index, the A-VIX is a real-time volatility index that provides an insight into investor sentiment and expected levels of market volatility.
US President Donald Trump will implement a series of trade tariffs on various imported goods on Tuesday US time.
The key trigger for the sell-off appears to be the lack of detail around the severity and scope of the tariffs, with investors preparing for the worst – a global trade war.
Matthew Sherwood, Head of Investment Strategy for investment firm Perpetual, told the Australian Financial Review, that there is “absolutely no doubt that recession risks are rising”.
“I would argue the likelihood is now in excess of 30% and the key factor in the near term will be April 2,” Sherwood said.
Lithium miner Pilbara Minerals (ASX:PLS) retreated the most on Monday, falling 8.18% to $1.69, while Champion Iron (ASX:CIA) tumbled 6.72% to $4.86.
Uranium miners Deep Yellow (ASX:DYL) and Boss Energy (ASX:BOE) were among the few miners that actually gained ground, adding 3.41% and 1.22%, respectively.
Gold continues its record run, trading at over US$3,117 ($4,962) an ounce as of 5pm AEDT.
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
