Investors on edge as tensions over tariffs and inflation data keeps investors on edge
Investors remained 'cautious' ahead of important?domestic data and sought clarity about the latest tariff salvo.
The S&P/ASX 200 index closed little changed at 9.022.30 points. The benchmark index had closed 0.6% lower Monday.
Local markets remained in a wait-and see mode after U.S. president Donald Trump warned that he would increase duties on countries who reneged on recently negotiated trade deals.
Investors also looked forward to Wednesday's consumer prices data, which was seen as crucial after Australia's recent
Rate hike
. Reserve Bank of Australia, the only major central banks outside of Japan to tighten their policy this year is driven by expectations of inflation running above its target band.
Tim Waterer is the chief market analyst for KCM Trade. He said that "the market feels as if it's in a classic 'risk off rotation' tug of war -- defensives and rate-sensitive sector are holding up the index, but growth names and financials are taking a hit."
The broader theme of caution is tariff headlines... and the looming CPI figure tomorrow keep traders on edge.
Tim said that financials on the bourse fell by 0.3%. This was largely due to a Macquarie decline of 3.6% amid increasing concerns about higher rates for longer affecting lending growth and fees.
Real estate fell 1.2%, while technology stocks dropped 3.5%.
BHP added 1.4% to the 1.1% increase in the miners sector, which was one of the few sectors that traded in green. Heavyweight miner BHP hit a new record earlier in the day, breaking the A$55 barrier for the first time.
The sub-index gained further momentum from a rally in lithium mining stocks, who surged due to renewed optimism about lithium prices.
Pilbara Minerals and Mineral Resources both gained 8% and 6.5%, respectively.
Energy stocks rose by 1.7%?aided by higher oil prices and the Woodside?Energy profit beat that lifted its shares to near a 19-month high.
New Zealand's benchmark S&P/NZX50 index rose by 0.8%, finishing the session at 13,532.31 point.
(source: Reuters)
