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Australian shares are headed for a “Black Monday” bloodbath, with ASX 200 futures pointing to a whopping -6.2% collapse – the single worst intraday fall for Aussie markets since the early days of the COVID-19 pandemic in 2020.
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The bourse’s impending capitulation, which will see as much as $120 billion wiped from the ASX, comes on the back of growing fears we’re heading into a recession.
To check the docket – this collapse will see the bourse tumble to around 7,190 points.
While Trump’s “Liberation Day” tariffs are the cause, China’s crack back on Friday – the same 34% tariffs on U.S. goods – confirmed we’re racing towards a global trade war rather than any deal between Washington and Beijing.
Trump has yet to suggest he’d reverse his tariffs blitz or kowtow to reversal calls.
The President did mention there’d be “no postponing” while golfing on Saturday though.
In no great shock, Friday’s blowback sent Wall Street into a tailspin; the S&P 500 lost 6% while the Nasdaq slumped into a bear market with a 5.8% drop.
Across the much-watched Mag Seven, a collective $1.55 trillion in market cap was lost.
Back home, some companies are striving on under the shadow of the $120B wipeout, with BHP (ASX:BHP) telling shareholders Chinese steelmakers won’t change production rates “for some years” despite Trump’s new tariffs regime.
James Hardie (ASX:JHX) chair Anne Loyd is meeting investors today too to answer backlash over the company’s US$14B Azek merger and the fact they didn’t get to vote.
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Looking at forex, the Aussie dollar has slumped to 59.9 US cents.
To commodities, which are in the greenback,
Iron Ore has shot down over the weekend to $98 a tonne in Singapore,
Brent Crude is trading at $63.59,
Gold is trading at $3,044 per ounce, and,
US natgas futures dropped 4% to sell at $3.68 per gigajoule.
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.
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