Stock Market Nosedives, Hits 100-Day Low
The Australian share market has suffered a brutal day, with the S&P/ASX 200 plummeting 4.46% to 7,325.70. This marks a new 100-day low as investor fears intensify over global economic uncertainty.
Also Read: ASX Energy Stocks Collapse as Market Panic Deepens
Deep Yellow Limited led the losses, dropping 14.48%, while Mineral Resources Limited fell 12.51%. Over the past week, the ASX 200 has shed 8.22%, making it one of the worst-performing global indices.
ASX 200 Performance
Heavy Losses Across All Sectors
The market downturn affected all major indices, with the ASX 300 down 4.46% and the ASX 50 sliding 4.41%. Small-cap stocks were hit hardest, with the ASX Small Ordinaries plunging 4.58%.
Gold stocks, often seen as a safe haven, also suffered, with the ASX All Ordinaries Gold Index falling 4.83%. Investors appear to be liquidating positions across all sectors.
Also Read: Commonwealth Bank Shares Plunge Over 6% in Market Shock
Biggest Fallers See Double-Digit Losses
Several ASX stocks recorded staggering losses today. Titomic Ltd led the decline, tumbling 18.18%, followed by Berkeley Energia Ltd, which lost 15.39%. Other major losers included Larvotto Resources (-14.82%), Botanix Pharmaceuticals (-14.38%), and St Barbara Ltd (-13.83%).
Trump’s Tariffs Fuel Market Panic
Donald Trump’s administration has announced a new round of tariffs, sparking fears of a worsening global trade war. In a bizarre twist, the US imposed a 10% tariff on the Heard and McDonald Islands, an uninhabited Australian territory populated only by penguins and seals.
Trump’s administration imposed a 10 percent tariff on the Heard and McDonald Islands, which are populated only by penguins. Credit: Facebook
Social media erupted in mockery over the decision, with users questioning its purpose. However, the broader economic implications of Trump’s tariff measures remain serious.
Australian Dollar Under Pressure
The Australian dollar has faced heavy selling pressure, despite US markets also struggling. Analysts cite two key reasons for the currency’s decline.
First, the Aussie dollar is considered a “risky” currency. When global uncertainty rises, investors dump it in favour of safer assets.
Second, Australia’s economy relies heavily on exports to China, which is Trump’s primary tariff target. If China’s economy slows, demand for Australian commodities like iron ore and coal could collapse, further dragging down the dollar.
Iron Ore Prices Slide, Threatening National Income
Singapore iron ore prices have dipped below $US100 per tonne, adding to concerns about Australia’s economic outlook. Weaker demand from China could see further declines, putting pressure on mining giants like BHP and Rio Tinto.
What’s Next for the ASX?
Investors are bracing for more volatility as fears of a global economic downturn grow. Analysts warn that if Trump escalates tariffs, markets could face deeper losses.
With the ASX already hitting new lows, will Australia’s stock market find support, or is more pain ahead?
