ASX to dip on open as Wall Street falls on Trump tariff pressure
Futures markets are pointing to a 30 point dip, of 0.35 per cent, at the open. The ASX closed down 13.7 points on Monday to 8589.30 after finishing last week at a record high. The Australian dollar was down slightly, fetching 64.99 US cents around 5.50am AEDT.
US stocks lost ground in afternoon trading on Monday. The S&P 500 was down 1.2 per cent in the first day of trading in the US after a holiday-shortened week. The benchmark index remains near its all-time high set last week.
The Dow Jones Industrial Average was down 641 points, or 1.4 per cent and the Nasdaq composite was 1.3 per cent lower.
Decliners outnumbered gainers by more than 5-to-1 on the New York Stock Exchange.
Loading
Tesla tumbled 7.4 per cent for the biggest drop among S&P 500 stocks as the feud between CEO Elon Musk and President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week.
The selling accelerated after the Trump administration released letters informing Japan and South Korea that their goods will be taxed at 25 per cent starting on August 1, citing persistent trade imbalances with the two crucial US allies in Asia.
'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge,' Trump wrote in the letters to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
28 minutes ago
- The Age
ASX set to slide lower as Wall Street retreats
A modest pullback for US stocks Friday eased the market from all-time highs and left major stock indexes on Wall Street in the red for the week. The S&P 500 closed 0.3 per cent lower a day after setting a record high. The benchmark index's loss for the week followed two straight weekly gains. The Dow Jones dropped 0.6 per cent, and the Nasdaq composite gave up 0.2 per cent after drifting between small gains and losses much of the day. The tech-heavy index was coming off its own all-time high on Thursday. The Australian sharemarket is set to retreat, with futures pointing to a slide of 13 points or 0.2 per cent at the open. The Australian dollar was fetching 65.75 US cents at 5.20am AEST. The US selling capped an uneven week in the market as Wall Street kept an eye on the Trump administration's rollout of new tariff threats against trading partners like Canada and looked ahead to the upcoming corporate earnings reporting season. President Donald Trump said in a letter on Thursday that he will raise taxes on many imported goods from Canada to 35 per cent, deepening the rift between the longtime North American allies. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25 per cent tariff rates that Trump first imposed in March. The move was the latest bid by the White House to use threats of higher tariffs on goods imported into the US in hopes of securing new trade agreements with countries around the globe, even historically close trading partners like Canada. Loading The administration had initially set Wednesday as a deadline for countries to make deals with the US or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has been been extended to August 1. Trump also floated this week that he would impose tariffs of as much as 200 per cent on pharmaceutical drugs and place a 50 per cent tariff on copper imports, matching the rates charged on steel and aluminum.
Sydney Morning Herald
28 minutes ago
- Sydney Morning Herald
ASX set to slide lower as Wall Street retreats
A modest pullback for US stocks Friday eased the market from all-time highs and left major stock indexes on Wall Street in the red for the week. The S&P 500 closed 0.3 per cent lower a day after setting a record high. The benchmark index's loss for the week followed two straight weekly gains. The Dow Jones dropped 0.6 per cent, and the Nasdaq composite gave up 0.2 per cent after drifting between small gains and losses much of the day. The tech-heavy index was coming off its own all-time high on Thursday. The Australian sharemarket is set to retreat, with futures pointing to a slide of 13 points or 0.2 per cent at the open. The Australian dollar was fetching 65.75 US cents at 5.20am AEST. The US selling capped an uneven week in the market as Wall Street kept an eye on the Trump administration's rollout of new tariff threats against trading partners like Canada and looked ahead to the upcoming corporate earnings reporting season. President Donald Trump said in a letter on Thursday that he will raise taxes on many imported goods from Canada to 35 per cent, deepening the rift between the longtime North American allies. The letter to Canadian Prime Minister Mark Carney is an aggressive increase to the top 25 per cent tariff rates that Trump first imposed in March. The move was the latest bid by the White House to use threats of higher tariffs on goods imported into the US in hopes of securing new trade agreements with countries around the globe, even historically close trading partners like Canada. Loading The administration had initially set Wednesday as a deadline for countries to make deals with the US or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has been been extended to August 1. Trump also floated this week that he would impose tariffs of as much as 200 per cent on pharmaceutical drugs and place a 50 per cent tariff on copper imports, matching the rates charged on steel and aluminum.
AU Financial Review
35 minutes ago
- AU Financial Review
The wealth industry's new all-powerful gatekeepers emerge
When the newly created investment firm Scarcity Partners announced it had bought a stake in Evidentia Partners last year, the cottage industry of asset consultants sat up and took notice. Maybe their business was worth something. And when Scarcity tripled its money in less than a year after ASX-listed Generation Development Group paid $320 million to acquire the business, the penny dropped. Perhaps their little businesses were worth a lot.
