The S&P/ASX200 index fell 57 points, or 0.7 per cent, closing at 8141.1 points and most sectors saw losses. Nine out of the eleven sectors suffered declines, particularly consumer staples and energy stocks, which took the biggest hits. This decline followed a 0.6 per cent drop the previous day, reflecting growing concerns over the global economic outlook.
Mining stocks, however, provided some relief. BHP and Rio Tinto showed modest gains, rising 0.2 per cent and 0.3 per cent, respectively. Gold stocks, including Newmont, also performed well, up 0.6 per cent, as investors sought safer assets amid global uncertainty. Technology stocks also saw some positive movement, with WiseTech rising by 1.2 per cent, buoyed by news that the company would appoint a new director to meet ASX requirements. NextDC, Australia’s largest listed operator of data centres, also posted a 0.7 per cent gain.
On the other hand, consumer staples bore the brunt of the day’s losses. Supermarket giants Woolworths and Coles saw their stock prices drop 3.9 per cent and 4.4 per cent, respectively, while Treasury Wine Estates and Endeavour Group also faced significant declines. Financial stocks were similarly hit, with the big four banks all closing lower. Commonwealth Bank fell 0.9 per cent, Westpac dropped 1 per cent, NAB lost 1.4 per cent, and ANZ saw a 0.9 per cent decline. The fintech company Block, which owns Square, Cash App, and Afterpay, further dragged the sector down with a 4.1 per cent drop.
Energy stocks, which had already faced pressure the day before, continued their slide, weighed down by falling oil prices. West Texas Intermediate crude dropped below $68 a barrel, while Brent crude closed near $71. Woodside, Santos, and Ampol all posted losses, as uncertainty in global markets kept oil prices volatile.
Meanwhile, Wall Street was grappling with its worst two-day drop since December. President Trump’s administration had imposed new tariffs on imports from China, Canada, and Mexico, prompting retaliatory actions from these countries and raising concerns about the global economy. These tensions added to worries that rising tariffs could stoke inflation and reduce global trade, which weighed heavily on the US stock market.
In Australia, economic data showed some positive growth, with GDP increasing by 0.6 per cent in the final quarter of last year. However, economists warned that the economic recovery remained slow due to persistent weakness in consumer spending and high interest rates, which continue to dampen private demand. While the Australian economy showed some resilience, there is little expectation of a rapid rebound without significant policy changes. This cautious economic outlook, combined with global trade uncertainties, contributed to a pessimistic day for the Australian share market.
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