The Australian share market tumbled to a six-week low on Tuesday, rattled by US President Donald Trump’s reaffirmation of tariffs on Mexico and Canada and a series of disappointing earnings results from major companies.
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The benchmark ASX 200 index dropped 56.30 points (-0.68%) to 8,251.90, while the All Ordinaries fell 62.10 points (-0.73%) to 8,498.00.
Amid the turmoil, the Australian dollar rose to 63.51 US cents as investors sought stability.
Tariff Tensions Trigger Market Jitters
The sell-off came after President Donald Trump confirmed that tariffs on Mexico and Canada would take effect in March, reviving fears of trade disruptions.
AMP Chief Economist Shane Oliver noted that while global share markets had been relatively resilient to Trump’s trade policies, nervousness was starting to creep in.
“Markets have been fairly stable, but Trump’s tariff policies are sparking fresh concerns. Investors are reacting cautiously.” – Shane Oliver, AMP
The uncertainty surrounding tariffs hit investor sentiment, with seven of the 11 ASX sectors closing in the red.
Australian Dollar in Tug-of-War: US Tariff Uncertainty and RBA Rate Cuts Shape AUD’s Fate
Australian Dollar Surges to Two-Month High Ahead of RBA Decision—Will the Rally Continue?
Earnings Season Shock: Major Companies Miss Market Expectations
A string of disappointing earnings reports further dampened the market, with several big-name companies missing expectations.
📉 Domino’s Pizza (ASX: DMP) – Down 10.47%
- Shares plummeted to a decade-low of $28.89 after the company reported a $22.2 million loss for the first half of the fiscal year.
- Domino’s was hit hard by $115.6 million in writedowns, impairments, and restructuring costs.
- While its Australian operations remained strong, weak performance in Japan and France dragged down results.
📉 Johns Lyng Group (ASX: JLG) – Down 33.42%
- The company’s stock collapsed to $2.53 after flagging a challenging operating environment due to reduced weather-related insurance claims.
- Johns Lyng cut its full-year EBITDA forecast to $126.5 million, down 4.5% from previous guidance of $132.5 million.
📉 Wesfarmers (ASX: WES) – Down 3.38%
- The retail and industrial giant’s decline was primarily due to trading ex-dividend, with shareholders set to receive $0.95 per share.
Banking Sector Declines Amid Market Uncertainty
The big four banks were not spared from the downturn:
- Commonwealth Bank (CBA) fell 1.25% to $154.27
- National Australia Bank (NAB) dropped 1.42% to $35.39
- ANZ dipped 0.71% to $29.34
- Westpac (WBC) closed marginally lower, down 0.096% to $31.25
Bright Spots: Woodside & Zip Defy Market Trends
Amid the sell-off, some stocks bucked the trend and delivered strong performances.
📈 Woodside Energy (ASX: WDS) – Up 2.78%
- The energy giant surged to $24.03 after reporting a 115% year-on-year profit increase, with net profit after tax hitting $US3.57 billion.
- Analysts highlighted Woodside’s strategic expansion into the US energy market as a key growth driver.
“Woodside’s shift towards LNG and clean energy investments positions them well for future growth.” – Junvum Kim, Saxo Asia Pacific
📈 Zip Co (ASX: ZIP) – Up 13.87%
- Zip soared to $2.71, fueled by strong earnings growth.
- Cash earnings before taxes, depreciation, and amortization (EBITDA) skyrocketed 117% to $67 million.
- Zip’s US operations posted a 40% surge in transaction volumes, driven by an exceptional holiday shopping season.
Looking Ahead: Will the ASX Recover?
As global economic uncertainties persist, investors will be closely watching:
✅ The Federal Reserve’s interest rate decisions
✅ Australia’s ongoing corporate earnings season
✅ Any further trade developments from Trump’s administration
For now, market volatility remains high, and investors will need to brace for further swings.
🚨 What do you think? Will Trump’s tariffs have a lasting impact on the ASX? Are you staying invested or moving to cash? Share your thoughts! 🚨
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