Australian financial markets experienced significant volatility following a U.S. judicial decision that challenged former President Donald Trump’s tariff authority, creating widespread uncertainty about future trade relations between the two nations.
The S&P/ASX 200 index declined by 55.4 points (0.6%) to settle at 9026, while the broader All Ordinaries index dropped 51.70 points (0.6%) to 9251.50. Market performance showed pronounced sector divergence, with eight of eleven industry sectors closing in negative territory. Only materials, industrials, and consumer staples managed to advance despite the overall bearish sentiment.
The market turbulence originated from a recent Supreme Court ruling that invalidated President Trump’s previous tariff strategy. In response, the administration announced implementation of a temporary 15% levy on all imports, generating concerns among international trading partners and investors alike.
Gold-related equities emerged as notable outperformers, benefiting from safe-haven demand. Ramelius Resources surged 8.2%, Greatland Resources advanced 6.38%, Newmont climbed 4.92%, and Evolution Mining gained 3.52%. The Australian dollar stabilized at 70.7 US cents amid the market fluctuations.
Marc Jocum, Senior Product and Investment Strategist at Global X ETFs, observed that tariff concerns and geopolitical volatility represent continuing themes from previous years that now appear likely to extend into 2026. “Institutional investors’ positioning currently reflects the most conservative stance in approximately two years based on total net long positions,” Jocum noted. “Despite this, gold prices continue their upward trajectory, suggesting that geopolitical tensions and macroeconomic uncertainty—particularly regarding U.S. conflicts with Iran and trade policies—are primary drivers rather than mere capital flows.”
Technology stocks faced substantial pressure amid artificial intelligence impact concerns. WiseTech Global declined 5.24%, TechnologyOne decreased 5.17%, and NextDC dropped 4.09%. The banking sector also retreated, with ANZ falling 2.29%, Westpac declining 1.18%, Commonwealth Bank dipping 0.63%, and National Australia Bank slipping 0.93%.
Energy companies mirrored the downward trend as Brent crude prices fell below $71 per barrel amid heightened Middle Eastern tensions. Woodside Energy decreased 1.2%, Santos declined 2.31%, and Ampol dropped 2.14%. Conversely, BHP reached a new peak of $54.75 before settling at $54.02, representing a 1.29% gain.
Individual corporate performances varied significantly. Mining services group Perenti plummeted 13.83% following disappointing first-half results, while Nuix soared 15.07% after exceeding December expectations. Austal declined 10.95% on poor financial results, and Lendlease slipped 7.21% after reporting a $200 million operating net loss.
Separately, retailer Harvey Norman announced its intention to vigorously defend against a class action lawsuit regarding promotional activities for Latitude Finance products between January 2020 and August 2021. The company’s shares declined 1.26% following the announcement.