Equity markets are again trending lower after US President Donald Trump announced planned tariffs on imports from Mexico, Canada and China will come into effect next week.
The S&P/ASX 200 slid 62.4 points, or 0.75%, to 8,205.8 points, as of 10.30am AEDT.
The index has lost 1.09% over the last five days, but is virtually unchanged over the last year to date.
The escalating concerns around a trade war weighed on commodities, while a stronger US dollar created headwinds, according to the ANZ.
Overnight, base metals were mixed and iron ore and gold retreated.
ANZ Rates Strategist Jack Chambers says iron ore fell on speculation that China may reduce steel production by 50 million tonnes this year, as officials look to tackle mounting overcapacity in the industry.
“This would ultimately weigh on iron ore demand. Concerns are also rising around the impact of Trump’s wide-ranging tariffs threats. A 25% tariff on US imports of steel have already been announced,” Chambers notes.
Ten of the 11 sectors were lower shortly after the opening bell. Materials led the bourse down with a 0.81% decline. Utilities dipped 0.29%, industrials edged back 0.18% and energy slipped 0.12%.
Gold producer Regis Resources (ASX:RRL) and uranium explorer Deep Yellow (ASX:DYL were among the resources stocks heading down.
Regis dropped 3.51% to $3.17, while Deep Yellow fell 3.26% to $1.04.
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
