Australian shares lower as US outlook weighs

Perth Now

3 days ago

Australian shares have started the week lower, tracking Wall Street weakness as tariffs and underwhelming US jobs figures weigh on the outlook for the world's biggest economy.
By midday on Monday the S&P/ASX200 had fallen 26.6 points, or 0.31 per cent, to 8,635.4, as the broader All Ordinaries lost 25.3 points, or 0.28 per cent, to 8,892.4.
The top-200 has so far outperformed the 0.4 per cent slip predicted by futures markets before the bell, in the wake of Friday's sell-off in global markets.
"Markets reacted decisively to the weaker than expected US jobs report, soft partial economic data coming out of the US, and President Trump's revamped tariff plan announced late last week," Westpac senior economist Pat Bustamante said.
The trade duties, the jobs report and Mr Trump's subsequent sacking of the US head of labour statistics have reinvigorated concerns about US economic strength and future growth.
Regarding "final" tariffs, Australia has been luckier than others in copping 10 per cent duty from US, but sectoral tariffs on steel, aluminium and pharmaceuticals remain a concern.
Seven of 11 local sectors were trading lower by lunchtime, with financials weighing heavily after a 1.1 per cent slip.
All four big banks were in the red, led by NAB and ANZ which fell 1.2 per cent. Commonwealth Bank was the best performer, down 0.8 per cent to $173.67.
The mining sector bucked the trend, up 0.9 per cent with help from gains among large cap miners. BHP had risen 0.4 per cent, Fortescue was up 1.3 per cent and Rio Tinto had gained 0.3 per cent.
But gold miners were stealing the show, as the broader return to risk-on sentiment lifted gold prices, sending Vault Minerals and Northern Star more than six per cent higher, as the precious metal traded at $US3,405 an ounce.
Consumer staples was the best-performing sector, up more than one per cent by midday, with Coles and Woolworths each gaining 1.5 per cent, and Dan Murphy's owner Endeavour surging 3.5 per cent to $4.18 after announcing the departure of executive char Ari Mervis.
Energy stocks slipped 0.7 per cent, tracking with oil prices after OPEC+ confirmed another production hike for September, and as US authorities indicated their latest tariff rates were unlikely to budge.
Brent crude futures are trading at $US69.21 a barrel, roughly 3.4 per cent lower than at Friday's ASX close.
The Australian dollar is buying 64.81 US cents, rallying 0.9 per cent since Friday's as worries about the US economy weighed on the greenback.