The S&P/ASX 200 closed 0.58% lower on Tuesday, shedding 47.60 points to finish at 8,198.10. The index hit a 20-day low, weighed down by losses in the energy and utilities sectors.
- The index has declined 0.65% over the past five days.
- Year-to-date performance remains relatively unchanged.
Figure 1: ASX 200 Chart
Wall Street Sell-Off Impacts ASX
Australian shares followed a downturn in US markets, driven by trade policy concerns.
- The Nasdaq Composite dropped 2.6%.
- The S&P 500 declined 1.7%.
- The Dow Jones Industrial Average fell 1.4%.
US President Donald Trump confirmed 25% tariffs on Canadian and Mexican goods. A 10% duty on Canadian energy exports also takes effect from Tuesday. Market participants remained wary of further disruptions to global trade.
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Sector Performance: Utilities and Energy Lead Declines
All ASX sectors traded in the red at midday. Utilities and energy stocks recorded the sharpest declines, dropping over 3%.
- Oil prices fell 2% to a 12-week low.
- The Organisation of the Petroleum Exporting Countries (OPEC) and Russia confirmed an Lower oil output increase in April.
- Investors showed caution towards commodity-based sectors.
At the close of trading:
- The S&P/ASX 200 Energy sector declined sharply.
- The S&P/ASX 200 Utilities sector also recorded significant losses.
- The S&P/ASX 200 Resources sector contributed to the overall market Lower downturn.
Top Gainers
Some stocks performed well despite the broader market weakness.
- Lynas Rare Earths Ltd (ASX: LYC) rose 2.91% to $7.07.
- Region Re Ltd Unit (ASX: RGN) gained 1.94% to $2.10.
- Healius Ltd (ASX: HLS) increased 2.27% to $1.35.
- Pepper Money Ltd (ASX: PPM) advanced 6.32% to $1.515.
- Spartan Resources Ltd (ASX: SPR) climbed 5.78% to $1.4175.
Investors remained focused on defensive sectors as broader market uncertainty persisted.
Top Losers
Several stocks experienced heavy losses, particularly in the mining and energy sectors.
- Mineral Resources Ltd (ASX: MIN) fell 10.24% to $21.48, hitting a three-year low.
- Mesoblast Ltd (ASX: MSB) dropped 8.37% to $2.30.
- Zip Co Ltd (ASX: ZIP) declined 7.05% to $2.24.
- Energy Resources of Australia Ltd (ASX: ERA) fell 20% to $0.002.
- Imricor Medical Systems Inc (ASX: IMR) slid 10.44% to $1.415.
Declining stocks outnumbered advancing ones by 791 to 315, with 424 stocks Lower unchanged.
Volatility and Commodities
Market volatility remained moderate.
- The S&P/ASX 200 VIX declined 2.39% to 12.40.
- Gold futures for April delivery rose 0.04% to $2,902.31 per troy ounce.
- Crude oil for April delivery fell 0.64% to $67.93 per barrel.
- Brent oil for May delivery declined 0.89% to $70.98 per barrel.
Investors watched crude oil prices closely amid global supply and Lower demand fluctuations.
Currency Markets
The Australian dollar remained stable against major currencies.
- AUD/USD held at 0.62, down 0.45%.
- AUD/JPY fell 0.54% to 92.56.
Market participants adjusted positions based on global economic uncertainty.
Institutional Activity
Contact Energy (ASX: CEN) announced that BlackRock Advisors and its affiliates Lower became substantial shareholders, acquiring 51.1 million shares. The acquisition represents 6.4% of the company’s total voting power. Institutional investors continue to monitor opportunities amid market fluctuations.
Index Performance
Broader ASX indices also recorded declines.
- All Ordinaries Index (XAO) dropped 0.68% to 8,420.9.
- ASX 300 Index (XKO) fell 0.61% to 8,126.3.
- ASX 200 Resources Index (XJR) lost 1.19% to 5,183.4.
- ASX Small Ordinaries Index (XSO) declined 1.74% to 3,102.3.
The ASX All Ordinaries Gold sub-index (XGD) bucked the trend, rising 0.33% to 9,933.6. Gold prices remained stable as investors sought safe-haven assets.
Outlook for the Lower Market
Australian equities face continued pressure from global trade tensions. Investors Lower remain cautious as international policy decisions impact market sentiment. The energy and utilities sectors remain under focus amid volatility in oil prices.
- Market analysts expect further movement based on trade policy shifts.
- Investors are watching upcoming economic data releases.
Economic conditions and geopolitical developments will drive short-term market sentiment.
