The Australian sharemarket closed marginally lower on Monday, as investor concerns around President Donald Trump’s decision to impose 25 per cent tariffs on aluminium and steel imports eased in afternoon trading.
The benchmark S&P/ASX 200 Index closed 0.3 per cent, or 28.6 points, lower at 8482.80 after earlier falling as much as 0.6 per cent, with eight of 11 sectors in the red.
Investor angst about Trump’s tariff plans for aluminium and steel exports – and the impact on global growth – initially weighed on the index, before reckoning with the fact that less than 1 per cent of China’s steel exports went to the US in 2024. China is Australia’s biggest buyer of iron ore, a key ingredient used to make steel. The Australian dollar slipped, then recovered after the announcement, and was trading 0.1 per cent higher at 4.40pm.
IG market analyst Tony Sycamore said the 25 per cent tariff on US steel imports would have only a marginal impact on the Australian market, compared to Trump’s plan for a 10 per cent tariff on all Chinese imports.
“Traders started to dig around [after the 25 per cent tariffs were announced] and look at what the actual implication is for China and by extension, the ASX 200. It’s just not as bad as the initial headline suggests,” he said.
Shares in Australia’s biggest steelmaker, BlueScope, lifted 1.8 per cent to $21.90 as investors bet it would be a net beneficiary of US steel tariffs. BlueScope has $5 billion of investments in the US and generates more than half of its profits from its North American operations.
Australian miners fell, after the initial tariff announcement sent the US dollar higher against major currencies. With commodities including iron ore, coal and copper traded in US dollars, a higher dollar risks making Australian commodity exports more expensive, and less attractive, to its biggest trade partner, China. Fortescue fell 1.5 per cent to $19.42, Rio Tinto 1.5 per cent to $119.32 and BHP 1 per cent to $40.09.
Meanwhile, a sell-off on Wall Street on Friday weighed on the ASX’s rate sensitive tech sector, falling 1.7 per cent, after the US jobless rate fell from 4.1 per cent to 4 per cent, dampening hopes for imminent rate cuts from the Federal Reserve.
WiseTech also dragged, tumbling 4.4 per cent to $124.20 after The Australian Financial Review reported founder Richard White faced three new allegations of inappropriate conduct. But CAR Group posted the biggest loss, despite raising its dividend and reporting a 9 per cent rise in revenue in H1. The shares fell 6.5 per cent to $38.36.
Utilities, healthcare and consumer staples were in the green, as traders bought into defensive sectors that are less reliant on economic growth.
Stocks on the move
In corporate news, Star Entertainment Group leapt 13.6 per cent to 12.5¢. The beleaguered casino operator said it would not accept proposals from Chow Tai Fook Enterprises and Far East Consortium to take over its 50 per cent stake and debt in the Queen’s Wharf complex in Brisbane.
The share price leap came even as Star Entertainment’s former leadership team was accused of putting profitability ahead of risk and misleading a major lender in a landmark six-week trial instigated by ASIC.
JB Hi-Fi shares reversed early gains to fall 4.6 per cent to $97.78, despite the retailer’s group sales climbing nearly 10 per cent in the first half to $5.67 billion, which was well ahead of market expectations.
Mayne Pharma Group soared as much as 24.4 per cent to $5.82 on Monday after the company forecast a 275 per cent leap in earnings before interest, tax, depreciation and amortisation owing to strong growth in its women’s health range.
And Ansell, which manufactures medical gear, leapt 8.1 per cent to $37.70 after the company said it was planning price rises to offset US tariffs.
