ASX 200 Falls Amid US China Trade War
After a positive Midweek following US president Donald Trump announcing a general reprieve on his aggressive “Liberation Day Tariffs", the ASX 200 has continued its late week slump. The escalating US China trade war has proved detrimental to the Australian Stock Market.
A Turbulent Week
The S&P/ASX 200 benchmark index fell by 0.8% on Friday, closing at 7,646.5 points, following a sharp sell-off on Wall Street overnight.
This week has been a rollercoaster for investors, with market volatility driven by shifts in the US tariff policy. Share prices have been swinging wildly between moments of relief and panic.
Since Trump’s announcement of the “liberation day” tariffs last week, the Australian share market has shed around 3.6% of its value. While some countries have seen a reduction in these hefty tariffs, Australia, along with the UK and New Zealand, remains subject to the US’s standard 10% tariff, with no changes to their position.
Health tech giant CSL took a significant hit on Friday, closing the week with a 6% drop. The decline came as traders responded to Trump’s warning about potentially removing tariff exemptions for Australian pharmaceutical products.
It seems as if the week ending on this slump is the realisation that the US China trade war is going nowhere. For now, the outlook for future gains in the ASX 200 is bleak. Particularly with the close nature of the Chinese and Australian economies.
Sources
The Guardian - Australian stock market slumps amid fears of worsening US-China trade war
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