Market Wrap / Monday meltdown

The tariff turmoil continued to affect global markets Monday, with investors hitting the sell button en masse. 

The S&P / ASX 200 Index fell more than 6% in early trade, the biggest one-day drop since the height of the Covid-19 pandemic, while the Aussie tumbled below US60c for the first time since 2020 amid the risk-off sentiment. Buyers moved in during the afternoon session, with the ASX 200 closing lower by 4.2% to 7343.30 points.

Stocks across Asia also plummeted, as China struck back against the US, imposing a tit-for-tat 34% tariff on goods imported from America, as the trade war heats up. Hong Kong’s Hang Seng Index slumped more than 10% while Japan’s Nikkei 225 fell close to 7% in intraday trading. 

Concerns about a global recession limiting demand prompted the mining sector to drop 4.8%. BHP shares closed lower by 6.1%, Rio Tinto was down 3.8% and Fortescue Metals Group was lower by 3.6%. Lynas Rare Earths was one of the few places to hide, as the stock picked up on the prospect of China’s reciprocal tariffs pushing rare earths’ prices. Shares rose 3.1%. Even safe-haven gold stocks didn’t escape the carnage, Evolution Mining was down 7.9% by close.

A slump in crude oil prices weighed on the energy sector, which fell 7%. Santos shed almost 10% while Woodside was down 5.8%. The latter also confirmed it will sell a 40% stake in its Louisiana LNG project to investment firm Stonepeak. Ampol plunged 7%. 

In the financial sector, market heavyweight CBA fell 6.2%. The overall financial sector slid 4.9% and Macquarie Group was down 0.8%.

In corporate news, Abacus Storage King surged 20.7% after its majority shareholder, Ki Corporation, and NYSE-listed Public Storage made an offer to purchase the remaining shares at $1.47 each.

Challenger rose 8.3% following the announcement that Japanese life insurer TAL Dai-ichi Life would acquire a 15.1% stake.Tonight, investors will assess the fallout on European and US markets, as President Trump remains adamant his tariffs are not intended to cause a market selloff.