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But the winner of the day was EML Payments, which saw its stock soar 29.2 per cent after saying it had lifted its underlying earnings by 46 per cent in the first quarter of the financial year.
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The laggards
Financial shares weighed on the local bourse, with Commonwealth Bank – the biggest stock on the ASX – slumping 3.6 per cent after hitting an intraday high of $160.27 on Monday. NAB (down 1.2 per cent), ANZ (down 1.7 per cent) and Westpac (down 1.4 per cent) also slid.
Energy giants Woodside (down 3.8 per cent) and Santos (down 4.2 per cent) both retreated, bucking a trend of positive results spurred by escalation tensions in the Russia-Ukraine war. Oil prices fell overnight, with Brent crude slumping 3 per cent to $US72.95. Ampol, the nation’s biggest refiner, fell 0.7 per cent.
Gold miners declined after Trump’s tariff pledge as the stronger US dollar reduced the allure of gold for investors, as it makes it more expensive for many buyers. Northern Star Resources lost 2.4 per cent, Evolution Mining was down 2.4 per cent and Perseus Mining dropped 1.9 per cent.
The lowdown
Posting on his social media site Truth Social, Trump threatened he would sign executive orders on his first day in the Oval Office on January 20 to impose import tariffs of 25 per cent on Canada and Mexico to clamp down on migrants and illegal drugs flowing across US borders. He also flagged an additional 10 per cent tariff on Chinese goods.
Trump accused the three nations of contributing to the widespread abuse of fentanyl – a synthetic opioid – which last year claimed the lives of more than 72,000 Americans.
FP Markets chief executive Nick Twidale said the negative reaction of the Australian market in response to Trump’s announcement was “a sign of things to come”. He warned the Republican control of the US Congress would spur the president-elect on to go “very strongly” on tariffs.
“He’s starting to flex his muscles already,” Twidale said. “There’s a real danger for Australian markets … I don’t think it’s great for global trade.”
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Twidale speculated that Trump chose to double down on his much-touted tariff plans after his appointment of hedge fund manager Scott Bessent as Treasury secretary managed to calm financial markets following a tumultuous trading period.
Bessent has argued for reducing the US government deficits. Such an approach would be soothing for Wall Street, which fears Trump’s policies may lead to a much bigger deficit, which in turn would put push up Treasury yields.
Australia’s weak session came after stocks ended higher on Wall Street overnight – before Trump’s Truth Social post – with those companies benefiting the most from lower interest rates and a stronger US economy leading the way.
The S&P 500 climbed 0.3 per cent to pull closer to its all-time high set two weeks ago. The Dow Jones Industrial Average added 1 per cent to its own record set on Friday, while the Nasdaq composite rose 0.3 per cent.
In other international markets, indexes moved modestly across much of Europe after finishing mixed in Asia.
In the crypto market, bitcoin dipped below $US95,000 after threatening to hit $US100,000 late last week for the first time. It was trading at $US94,730 as of 5.09pm AEDT.
Tweet of the day
Quote of the day
“I expect China and the United States to engage with each other to talk about each other’s policies on how to manage our relationship at the proper time for them when the new administration comes into office in January.”
Chinese ambassador to Australia Xiao Qian on Tuesday, after Trump pledged to impose an additional 10 per cent trade tariff on China.
You may have missed
Bubble tea chain Chatime and its managing director Chen “Charlley” Zhao have been penalised for underpaying more than 150 employees, some earning rates as low as $7.59 an hour, and many of those vulnerable junior workers and international students.
The Federal Circuit and Family Court ordered the bubble tea franchisor to pay $120,960 and Zhao to pay a personal penalty of $11,880 for his involvement in the underpayments.
with AP, Reuters, Bloomberg
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