The Australian sharemarket eased on Monday, weighed down by escalating global trade tensions as United States President Donald Trump announced plans to double tariffs on imported steel and aluminium.
The benchmark S&P/ASX 200 index dropped 20.6 points or 0.2% to 8,414.1. Losses were broad-based, with eight of the 11 major sectors in negative territory, led by Energy.
Santos lost 1.5%, Woodside Energy dipped 1.1%, and Viva Energy ended 2.7% lower.
Despite the broader weakness, BlueScope Steel surged 4.4%, with investors betting the company would benefit from higher tariffs. BlueScope generates nearly half of its earnings from U.S. operations, making it a potential winner from Washington’s trade stance.
Aluminium-related stocks struggled amid the news. Alcoa fell 4.8% and South32 declined by 3.6%.
Meanwhile, iron ore producers lost ground as iron ore prices fell 0.7% to one-month lows of US$95 per tonne in Singapore.
BHP, Rio Tinto, and Fortescue Metals slipped 1.2%, 1.7%, and 2.5%, respectively.
The market was further rattled after Trump took aim at Beijing, accusing China of having “totally violated” the U.S.-China trade agreement.
Trump later said he would speak directly with Chinese President Xi Jinping in an effort to resolve the dispute.
On the upside, Soul Pattinson jumped 16.4% and Brickworks soared 27.6% after the two firms announced a $14 billion merger to form a diversified conglomerate with operations in investments, private capital, property, and building products.
Perenti lifted 3.5% after securing a $1.1 billion, five-year contract for underground mining services at Endeavour’s gold operations in Burkina Faso.
On the bond markets, 10-year yields were steady at 4.275%, while 2-year yields lifted 0.7% to 3.294%.
