FX.co ★ Australian Shares Drop on Recession Fears

The S&P/ASX 200 Index experienced a significant decline of 3.59%, closing at 7,393 on Monday. This marked the third consecutive session of losses, bringing the index to its lowest point in over a year. This downturn is attributed to the escalation of trade tensions, which have raised concerns about a potential global recession. Prime Minister Anthony Albanese has dismissed the idea of implementing countermeasures against the United States' imposition of a 10% tariff on Australian goods, considering that the US constitutes less than 5% of Australia's export market. Nevertheless, the heightened US tariffs on major Australian trading partners, including China, Japan, and South Korea, have adversely affected the general trade and economic outlook. The mining and energy sectors were notably impacted due to weaker commodity prices, with significant declines observed in companies such as BHP Group, which fell by 6.6%, Fortescue by 5.9%, Northern Star Resources by 1.8%, Woodside Energy by 5.5%, and Santos by 9.2%. Additionally, prominent banks faced substantial downturns, with the Commonwealth Bank decreasing by 6.2%, ANZ Group by 5.4%, Westpac Banking by 5.2%, and NAB by 4.8%.