Market Tumult as Trade Tensions Escalate: ASX Closes Lower
Market Tumult as Trade Tensions Escalate: ASX Closes Lower
3
The Australian stock market experienced volatility on Tuesday, closing at a lower point after news broke that trade negotiations between the United States and China had failed, leading both countries to impose new tariffs.
The benchmark ASX200 index shed 5.4 points, ending the session at 8,374 points. In contrast, the All Ordinaries Index managed a minor gain, closing at 8,633.40 points. Despite a positive trend during most of the day, the market turned sour as trading closed in reaction to the deteriorating trade relations between the two economic giants.
In a tense development, China responded to U.S. tariff measures by enforcing its own, with some tariffs reaching as high as 15% on select American imports. This move came after U.S. President Donald Trump announced tariffs that include a 10% levy on Chinese goods. Notably, China targets American coal, LNG with a 15% tariff, while crude oil, farm equipment, and certain autos face a 10% tariff, effective from February 10.
Market analysis drew attention to the ASX's initial resilience. Analyst Tony Sycamore noted, "The ASX200 had managed to stay steady earlier after an agreement by US President Trump to delay tariffs on Mexico and Canada." The reprieve was attributed to both North American nations' commitments to stricter border security measures, leading to a temporary tariff freeze.
CommSec's Laura Besarati commented on the day's trading atmosphere, highlighting investors' anxiety over the potential onset of a trade war. “While today was better compared to a significant 1.8% plunge seen recently, investors remain on edge,” Besarati explained. “Breaking news just before close spurred a sell-off, with the market declining by the day’s end.”
The market sell-offs were widespread, with most sectors reeling under pressure. The energy sector, for instance, felt the brunt of lower oil prices, compounded by the US tariff delay on its major foreign oil suppliers. Leading the decline in stocks were Audinate Group and Lynas Rare Earths, falling 4.51% and 3.81% respectively.
Despite the overall downtrend, there were some bright spots. The healthcare sector, notably, witnessed impressive performances; Pro Medicus soared to a record high, climbing 5.18% following a substantial seven-year, $53 million contract win. Additionally, Nufarm rose 3.37%, and Appen made a significant leap of 9.77%.
In currency markets, the Australian dollar also faced pressures, dropping 0.67% to 61.84 US cents by the close of trade.
This coverage is based on reports originally published by NewsWire and others. The evolving dynamics of the global trade situation continue to have profound effects on financial markets around the world.
Published:Wednesday, 5th Feb 2025 Source: Paige Estritori
Peter Stevens Motorcycles, a cornerstone of Australia's motorcycle retail industry since 1970, has entered voluntary administration, revealing debts exceeding $65 million. This development casts uncertainty over the future of the company's 400 employees and its extensive customer base. - read more
Harley-Davidson is reportedly in discussions to sell a stake in its financing unit, Harley-Davidson Financial Services (HDFS), to investment firms Pacific Investment Management Co (PIMCO) and KKR & Co. The proposed deal, valued at approximately $5 billion, includes the sale of existing motorcycle loan portfolios. - read more
Westpac has announced a promotional offer for individuals seeking to finance their motorcycle purchases. Until 30 October 2025, the bank is waiving the $250 establishment fee on its unsecured personal loans for motorcycles. This initiative aims to make motorbike ownership more accessible and affordable for Australians. - read more
National Finance and Loans (NFAL) has entered into a multi-year partnership with Honda Racing Australia, marking a significant collaboration in the Australian motorcycle racing scene. This alliance was unveiled at the final round of the Australian Supercross Championship, where NFAL assumed title rights for rider Alex Larwood's #5 entry. - read more
The importance of motorcycle maintenance cannot be understated, especially when faced with the unique and shifting weather conditions that span our vast continent. From the scorching heat of the Outback to the wet and windy coastline, traversing Australia on two wheels requires your machine to be as adaptable as you are. - read more
Imagine the thrill of cruising down Australia's scenic coastlines or thundering through its vast outback with nothing but the open sky above and the roar of the engine beneath. This dream of bike ownership is an alluring prospect for many, promising a sense of freedom that is hard to find elsewhere. - read more
There's nothing quite like the thrill of hitting the open road on your motorcycle. The freedom, the exhilaration, and the sense of adventure are unparalleled. For many Australians, motorcycling isn't just a mode of transport; it's a passion and a lifestyle choice. - read more
Welcome to the exhilarating world of motorcycle riding. Whether you're a seasoned rider or just getting started, there's something uniquely thrilling about hitting the open road on two wheels. - read more
Start Here
Knowledgebase
Liquidity: The ease with which an asset or security can be converted into cash without affecting its market price.
