Australian Shares Hit Hard Amid Global Uncertainty
The Australian stock market suffered another steep decline today, with the S&P/ASX 200 dropping 170.70 points (2.17%) to 7,689.00. The index hit a 100-day low, continuing its downward trajectory amid global economic instability. Over the past five days, the index has lost 3.67% and is now down 1.64% over the past year.
Investors remain on edge as fears of a US recession grow, with global trade tensions and falling commodity prices adding to the market’s woes.
ASX 200 Performance
Energy and Tech Stocks Lead the Sell-Off
Most sectors closed in the red, with energy (-7.59%) and information technology (-5.84%) suffering the heaviest losses. Financials, real estate, and industrials also fell sharply, reflecting widespread selling pressure.
Amotiv Limited (-16.15%) and Zip Co Limited (-12.42%) were the worst-performing stocks, with investors dumping riskier assets. Other major decliners included Breville Group (-11.38%) and Karoon Energy (-10.45%), both facing double-digit losses.
Despite the downturn, consumer staples emerged as a rare bright spot. Investors shifted towards defensive stocks, boosting Woolworths Group (+3.25%) and Coles Group (+3.20%). Gold mining stocks, including Capricorn Metals (+5.47%) and Gold Road Resources (+3.40%), also gained as investors sought safe-haven assets.
ASX Officially Enters ‘Technical Correction’
With today’s decline, the ASX 200 is now in a technical correction, having fallen 10% from its all-time high of 8,615 points in February.
A technical correction is defined as a drop of 10% or more from a recent peak. The market’s struggles reflect mounting concerns over economic growth, inflation, and rising global interest rates.
AMP’s Head of Investment Strategy, Shane Oliver, warned that the risk of a US recession had increased significantly.
“The risk of a US recession has gone up again,” Oliver said.
“The good news is that we may be getting close to the top on US tariffs, which may help settle markets down. The bad news is that global growth is weakening, and markets are reacting accordingly.”
The ongoing volatility has left many investors questioning whether the ASX will continue to slide or find a bottom in the coming weeks.
US Tariffs and Trade War Fears Shake Markets
The fear driving today’s sell-off stems from US tariffs and potential trade war escalations. Investors remain uncertain about how countries like China will respond, raising concerns about the broader global economic impact.
“A rough estimate is that the hit to US growth will be at least 1%, with a similar amount added to inflation,” Oliver explained.
Markets are also closely watching how the US Federal Reserve will respond. Some analysts believe that if economic data weakens further, the Fed may need to adjust its monetary policy stance.
Rising tariffs are already hitting Australian industries, particularly in mining and energy, which rely heavily on global trade. Exports to the US could suffer further, potentially impacting corporate earnings and future growth projections.
AustralianSuper Members Panic Over Online Issues
As markets fell, many AustralianSuper members were unable to log into their accounts, with some reporting $0 balances on their screens.
AustralianSuper quickly issued a statement reassuring members:
“Even though you may not be able to see your account, your funds remain secure.”
Despite this reassurance, many investors took to social media to express frustration. Other funds, including Hostplus and Australian Retirement Trust, also experienced technical issues, suggesting a possible overload of login attempts as members rushed to check their balances.
The situation reflects the heightened anxiety in financial markets, with investors increasingly worried about the impact of falling stock prices on their retirement savings.
What’s Next for the ASX?
With the ASX 200 down nearly 4% this week, analysts warn that further declines could follow if US economic conditions deteriorate.
Investors now watch global markets closely, with the US futures market holding the key to short-term direction. If Wall Street experiences another major sell-off, the ASX could see further downside pressure.
At the same time, some analysts believe the market could be nearing a bottom, with certain sectors looking oversold. Defensive stocks, including consumer staples and healthcare, may continue to provide stability amid the turmoil.
For now, investors remain cautious, as economic uncertainty continues to drive market volatility.
