ASX Opens 1.2% Lower Amid Broad Market Sell-Off
The Australian share market opened lower, following global market trends. The ASX 200 dropped 1.2% to trade just below 7,800 points at 10:30 am AEDT.
Figure 1: ASX 200 over 12 months
Healthcare and Consumer Stocks Lead Declines
Healthcare stocks were among the hardest hit. A major sell-off in Resmed dragged the sector lower. Resmed shares fell 6.7% after CEO Mike Farrell sold a US$11 million stake in the company.
Consumer cyclical stocks also faced pressure. Investors showed caution amid broader market weakness.
Gold Miner Ramelius Resources Leads Market Losses
Ramelius Resources recorded the biggest decline in the ASX 200, falling 7.8%. Broker downgrades triggered the steep sell-off.
Energy Stocks Outperform as Uranium Miners Rally
Energy stocks showed resilience, with uranium miners posting gains. Deep Yellow rose 4.5%, while Paladin Energy gained 2.7%.
The Australian listing of Alcoa also attracted demand. The US aluminium giant’s shares climbed 1.7% in early trade.
ASX 200 Approaches Correction Territory
The ASX 200 has declined more than 9% from its peak of 8,556 points, reached less than a month ago.
A correction is defined as a drop of 10% or more from a recent high. The index is approaching that threshold.
Also Read: Australian Sharemarket Plunges Amid Fears of Trump Tariff Fallout
Banks Hit Hard as ASX 200 Declines
Banking stocks remain among the worst-performing sectors on the ASX 200, dropping around 2% across the board.
The Commonwealth Bank of Australia (CBA), often labeled the “world’s most expensive” bank by share price/book value, has fallen more than 14% from its record high of $166.71 on February 13. The decline puts CBA in correction territory. Despite the drop, the share price remains above many brokers’ targets of around $100 per share.
Figure 2: ASX Retail Banks Today
Since the start of 2024, the “big four” banks have seen significant declines, with ANZ holding up the best and NAB experiencing the largest drop:
- ANZ: -0.5%
- CBA: -6.3%
- Westpac: -7.4%
- NAB: -10.6%
Banking stocks continue to face pressure amid broader market weakness.
US Steel Tariffs Unlikely to Directly Impact Australia
The ANZ economic team expects minimal direct impact from US tariffs on Australian steel and aluminium.
According to ANZ, Australia’s aluminium and steel exports to the US accounted for just 0.2% of total goods exports in 2024.
However, Australia could face indirect effects. A slowdown in China may reduce demand for Australian exports. Rising trade tensions could also weaken business and consumer confidence.
Figure 3: Australia / US Trade Balance
US Implements 25% Tariff on Australian Steel and Aluminium
The US has confirmed that 25% tariffs on Australian steel and aluminium will take effect at 3 pm AEDT.
Canada secured a last-minute delay on its steel tariff after Ontario agreed to remove a 25% surcharge on electricity sold to the US.
Australian Steel Industry Seeks New Markets
Business leaders in New South Wales’ Hunter region are considering alternatives to US exports. The area is home to Tomago Aluminium, the country’s largest aluminium smelter, and multiple steel manufacturers.
Business Hunter CEO Bob Hawes said the tariffs are disappointing but may create opportunities.
“It would be absolutely devastating to our local economies if this does trigger a decision to wind-down or close the Tomago Aluminium smelter,” Hawes said.
“But I doubt that will be the default response from any of our operations here in Australia.”
Hawes said businesses would explore new markets if contracts with the US expire or are not renewed.
“Aluminium and steel are well sought-after commodities around the world,” he said.
Figure 4: Business Hunter CEO Bob Hawes
Tomago Aluminium declined to comment.
ASIC Sues Australian Super Over Delayed Death Benefits
ASIC has sued Australian Super for delays in processing nearly 7,000 death benefit claims between July 2019 and October 2024.
The regulator alleges claims took between four months and four years to assess, impacting 6,897 cases. It also claims 752 members did not receive benefits promptly after death.
ASIC Deputy Chair Sarah Court said the case aims to protect vulnerable Australians.
“It is vital that death benefit claims are processed in a timely manner,” Court said.
ASIC seeks penalties, declarations, an adverse publicity order, and compliance measures. This follows a similar case against Cbus over claim delays.
IAG Responds to Cyclone Alfred Damage Claims
Insurance Australia Group (IAG) has received more than 4,000 claims related to ex-Tropical Cyclone Alfred.
The claims come from affected areas in south-east Queensland and northern New South Wales. Most claims involve property damage from wind and water.
IAG said it has increased its property assessor workforce, bringing in additional staff from its New Zealand operations.
IAG CEO Nick Hawkins said the company has moved from readiness to recovery efforts.
“Our pre-booked temporary accommodation is now being utilised by some impacted customers, and customers can also apply for emergency financial assistance and mental health support,” Hawkins said.
“We have been on the ground since Saturday morning assessing claims and conducting emergency repairs.”
IAG has more than 250,000 customers in the affected regions.
Market Outlook
The ASX 200 faces continued volatility. The index is nearing correction territory as global market pressures weigh on sentiment.
Trade tensions, legal challenges, and extreme weather events remain key factors influencing investor confidence.
