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Highlights

  • ASX 200 Declines: The index dropped 0.3% to 7,943.90, tracking global losses.

  • Tariff Impact: U.S. President Donald Trump’s 25% tariff on auto imports raises supply chain concerns.

  • Sector Performance: Tech and banking stocks fell, while miners and gold stocks provided some support.

Australian shares edged lower on Friday, mirroring global market weakness as investors reacted to new U.S. auto tariffs and awaited the Reserve Bank of Australia’s (RBA) policy meeting next week.

The S&P/ASX 200 index slipped 0.3% to 7,943.90 as of 2337 GMT, marking its second consecutive session of declines. Despite this, the benchmark is still set to end the week 0.1% higher.

Tariffs Fuel Market Caution

Investor sentiment took a hit after Trump unveiled a 25% tariff on imported cars and light trucks, set to take effect April 3. The announcement sparked concerns about disruptions to global supply chains, which led to a lower close on Wall Street overnight.

Market Movers: Tech and Banks Struggle, Miners Shine

  • Tech stocks (XIJ) were the biggest drag, dropping 1.2%, with Xero (ASX:XRO) falling 2%.

  • Banking stocks (XFJ) lost 0.5%, with the ‘Big Four’ banks slipping between 0.2% and 0.6%. Despite this, the sector remains on track for a second weekly gain.

  • Miners (XMM) helped limit losses, rising 0.2%, supported by higher iron ore prices driven by Chinese demand. Major players like Rio Tinto (ASX:RIO), BHP (ASX:BHP), and Fortescue (ASX:FMG) all gained around 0.1%.

  • Gold stocks (XGD) surged 2.5%, led by Northern Star Resources (ASX:NST), which jumped 3.1%. The gold sub-index is on track for a fourth straight weekly gain, up 2.8%.

Looking Ahead: RBA Meeting in Focus

Investors are now shifting focus to the RBA’s two-day meeting, starting March 31. While markets are not pricing in another full rate cut until July, any signals from the central bank could influence sentiment in the coming days.

Meanwhile, across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index (.NZ50) remained flat at 12,307.8.