FX.co ★ Australian Shares Extend Losses on Trade Concerns

The S&P/ASX 200 Index fell by 1.4%, dipping below the 7,800 mark on Friday, and thus continuing the decline from the previous session. It has now reached its lowest point in nearly eight months. This downturn in Australian shares reflects a sharp selloff experienced on Wall Street overnight, which resulted in a $4 trillion loss in market value. This market reaction comes as investors weigh the implications of the reciprocal tariffs announced by US President Donald Trump. Although exports to the US constitute only a small fraction of Australia's trade, Prime Minister Anthony Albanese has ruled out retaliatory measures against the US. Nevertheless, there are ongoing concerns as major Australian trading partners—China, Japan, and South Korea—are hit with heavy US tariffs, posing a risk to the broader economic outlook. The energy sector led the decline, exacerbated by a significant drop in oil prices, with companies like Woodside Energy and Santos experiencing substantial losses of 7.6% and 6.9%, respectively. Additionally, financial and mining stocks are also facing downward pressure.