FX.co ★ Australian Shares Fall for Second Session

The S&P/ASX 200 index dropped by 0.3% to close at 8,567 on Tuesday, continuing its downward trend from the prior session amid escalating concerns over new US tariff threats and the delay of a key trade agreement deadline, which have heightened global market instability. President Donald Trump announced an increase in tariff rates targeting fourteen countries still in negotiation over trade agreements with the US. This update includes a significant 25% tariff on major exporting countries such as Japan and South Korea. Additionally, Trump issued an executive order postponing the application of reciprocal tariffs from July 9 to August 1, following discussions with high-level administration officials. In the domestic market, Australian investors are keenly anticipating the forthcoming monetary policy announcement expected later today, with predictions largely indicating a 25 basis point reduction in interest rates, bringing it down to 3.60%. Key stocks declining included BHP Group Limited, which fell by 2.1%, Rio Tinto Limited, down by 2%, Fortescue Ltd decreasing by 1.3%, and CSL Limited, which also dropped by 1.3%.