On Wednesday, the S&P/ASX 200 index declined by 0.5% to approximately 8,547, following a stagnant trading session. This downturn was attributed to deteriorating sentiment stemming from recent trade measures imposed by U.S. President Donald Trump. He definitively announced that there would be no further extensions on tariffs scheduled for August 1 and introduced extensive new sanctions. These measures included a 50% tariff on copper imports, the possibility of implementing 200% duties on pharmaceuticals, and a 10% levy on goods imported from BRICS nations.
In Australia, Reserve Bank of Australia (RBA) Deputy Governor Hauser addressed these developments on Wednesday, expressing keen attention to the evolving U.S. tariff situation amidst a climate of substantial global uncertainty. He remarked that although the full impact of these tariffs on Australia is still emerging, both business and household sentiment in Australia have remained more resilient compared to the U.S. and Europe.
Surprising market expectations, the RBA decided on Tuesday to keep interest rates steady at 3.85%, taking a cautious approach as they await clearer evidence of inflation abating. Within the corporate sector, gold stocks fell to a three-month low due to declining bullion prices. Performance among mining companies was varied, and healthcare firms experienced early market pressure, notably impacted by a 0.3% decrease in CSL's stock value.
