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Highlights

  • S&P/ASX 200 drops 6.5%, hitting lowest levels since December 2023.

  • Miners, banks, and energy stocks lead the selloff as Trump’s tariffs shake global markets.

  • Gold and NZ markets not spared as investor sentiment turns defensive.

Australian shares suffered a brutal decline on Monday, with the benchmark S&P/ASX 200 index tumbling 6.5% to 7,169.20 points, marking its worst trading day since March 2020. The sharp fall came as global investors fled to the safety of bonds, rattled by renewed trade tensions sparked by U.S. President Donald Trump's tariff escalation.

The ASX 200 had reached its lowest level in nearly four months, tracking a widespread rout in global equity markets. The selloff was triggered by the White House’s hardline stance on trade with China, with President Trump doubling down on tariffs and dismissing concerns that his policies were fuelling financial instability.

"Sometimes you have to take medicine," Trump said on Sunday, adding that he would not strike a deal until the U.S. trade deficit with China was addressed.

Sectors Deep in the Red

Losses were broad-based across the Australian market, with the mining, banking, and energy sectors absorbing the brunt of the damage.

  • Miners sank 8.2%, their worst performance since 2020, as iron ore prices slipped following weak demand signals from China. Major players BHP Group, Rio Tinto, and Fortescue Metals dropped between 5.3% and 8.3%.

  • Banks fell 7.4%, with the ‘Big Four’ lenders—Commonwealth Bank, ANZ, Westpac, and NAB—recording declines ranging from 6.3% to 7.8%. The financial sector also registered its largest one-day drop since March 2020.

  • Energy stocks nosedived 9.7%, tracking declines in global oil prices driven by trade war fears and concerns over global demand. The sector hit its lowest point since November 2020.

Gold stocks weren’t spared either, despite the metal traditionally serving as a safe haven during times of volatility. The gold sub-index dropped 8.4% as investors offloaded positions to cover broader market losses. Evolution Mining plunged 10.2%.

Fallout Extends to New Zealand

Across the Tasman, New Zealand’s S&P/NZX 50 index shed 3.5%, falling to 11,800.15 points as risk aversion swept through regional markets. Investors there are now turning their attention to the Reserve Bank of New Zealand’s interest rate decision, due 9 April, which could signal the central bank’s stance amid rising global uncertainty.