The Australian share market is primed for a big fall today as ASX investors have the first opportunity to consider and react to a weaker performance on Wall Street on Friday and the announcement over the weekend of United States tariffs.
At 9:40 am AEDT (10:30 pm GMT) the S&P/ASX 200 March share price index (SPI) contract was 101 points, or 1.1%, lower at 8,406 points, the lowest level in almost two weeks.
In New York on Friday the Dow Jones Industrial Average lost 0.8%, the S&P 500 finished 0.5% lower and the Nasdaq Composite eased 0.3% ahead of President Donald Trump’s announcement of tariffs on major U.S. trading partners.
This clouded an otherwise positive mood in Australia where the S&P/ASX 200 closed at an all-time high of 8,532.3 points on Friday to end a week in which the benchmark indicator gained 1.5%.
Burrell Stockbroking wealth adviser Adam Dight said although the market knew the tariffs were coming it reacted with a tantrum on the news and this response could permeate through the Australian profit reporting season.
“Investors have gone into a bit of shock after things were looking pretty good,” he said.
“It was a great month for the Aussie market, up 4%, and overseas markets all hit records highs so it’s all very relative.”
He said tariffs might reduce Chinese economic growth but the authorities could respond with another stimulus package.
Among the stocks to watch are Fisher & Paykel which said costs would be higher in the 2026 financial year due to a 25% tariff on goods imported from Mexico where it manufactures 45% of its medical devices and equipment and which supplies 60% of its volumes to the United States.
On fixed interest markets, Australian Government bond yields eased with 10-year and two-year rates down 0.4% and 0.96% at 4.437% and 3.806% respectively.
