The Australian equity market experienced a pronounced downturn during Tuesday’s trading session, primarily driven by escalating geopolitical friction between the United States and European nations. The benchmark S&P/ASX 200 index declined by 58.60 points, representing a 0.66 percent decrease to close at 8,815.90, while the broader All Ordinaries index fell 56.30 points (0.61 percent) to settle at 9,138.60.
Market analysts attributed the bearish sentiment to renewed transatlantic trade tensions following former President Trump’s tariff threats against several European countries. The confrontation centers on the United States’ strategic interest in acquiring Greenland, with the administration threatening 10 percent tariffs against Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain. European authorities have responded with countermeasures potentially affecting €100 billion ($174 billion) in U.S. goods.
Financial and materials sectors led the decline, with all four major banking institutions recording losses. Commonwealth Bank shares decreased by 1.81 percent to $150.48, Westpac dropped 0.98 percent to $38.59, NAB fell 0.85 percent to $41.86, and ANZ finished 1.15 percent lower at $36.94.
The resources sector faced significant pressure despite BHP reporting substantial commodity price improvements, including a 32 percent annual increase in copper prices and a 4 percent rise in iron ore. BHP shares declined 1.99 percent to $47.78 following revelations that the first phase of its Jansen potash project would exceed initial estimates by over $1 billion, reaching $US8.4 billion. Rio Tinto decreased 2.04 percent to $146.34, while Fortescue slid 0.58 percent to $22.26.
Market performance showed sector divergence, with seven of eleven industry sectors finishing lower. Utilities and technology stocks provided some offsetting gains, led by Origin Energy’s 2.62 percent surge to $11.34 after announcing an extension of operations at Australia’s largest coal-fired power plant until 2029.
Individual company performances varied considerably. ARB Corporation shares plummeted 12.04 percent to $28.42 following unaudited sales revenue of $358 million for the first half-year, approximately 1 percent below previous corresponding periods. Conversely, Bellevue Gold rallied 5.01 percent to $1.78 after reporting strong sales metrics, and Hub24 shares advanced 3.1 percent to $101.21 following record net inflows of $5.6 billion.
The Australian dollar demonstrated resilience amid market volatility, strengthening against the U.S. dollar to trade at 67.29 US cents.