Turning to the Australian market, the ASX 200 Index was down 0.38% on Tuesday morning. Investors reacted to Trump’s threat of broader tariffs, which could impact Australian trading conditions. Bank, gold and oil stocks dragged the Index down.
The Commonwealth Bank of Australia fell 2.96% on fears of possible trade disruptions.
Meanwhile, Woodside Energy Group Ltd. fell. (WDS) by 2.56% after oil prices plummeted overnight on reports of a ceasefire between Israel and Hezbollah. In addition, Northern Star Resources Ltd. fell. (NST) by 1.53% as easing geopolitical tensions dampened safe-haven demand for gold. The gold price fell 3.33% to $2,625 on Monday.
Outlook
Investors should monitor inflation data from Japan, stimulus talk from China and commentary from central banks. New stimulus from Beijing, aimed at domestic consumption, could boost demand for riskier assets. However, a more aggressive BoJ could boost demand for the Japanese yen, which could put pressure on Nikkei Index-listed stocks. Stay up to date with our latest updates to manage risk effectively.