More than $160bn has been wiped off the Australian share market, as fears of a full-blown trade war grip investors.
The benchmark S&P/ASX 200 sank more than 6% to trade below the 7,200 point mark within minutes of the market opening on Monday, sending it back to levels not seen since late 2023.
The huge price falls are diminishing the value of almost all investment and superannuation portfolios with shares, building on the market falls recorded last week immediately after Donald Trump announced the details of his “liberation day” tariff plan.
There were few places to hide on the ASX on Monday, with everything from banking to mining and energy stocks down sharply.
Shares in Australia’s two biggest listed companies, Commonwealth Bank and BHP, were both down more than 8% in early trading.
The sell-off follows a sharp fall on Wall Street on Friday, weighed down by China’s retaliatory tariffs to Donald Trump’s new trade regime.
Traders view Australia’s economy as being closely tied to China through their significant trading relationship.
The Australian dollar also fell sharply on Monday morning, to trade below 60 US cents, down from about 64 US cents mid-last week, making overseas travel and imports more costly.
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