Big four banks drag the ASX to worst day since April
The benchmark ASX 200 slumped 89 points or 1.02 per cent to 8,668.20. The massive falls came just a single trading day after the benchmark had its best gains since the mid April recovery.
Even with the large falls during Monday's trading, the ASX 200 still had its second highest ever close.
The broader All Ordinaries also fell 80.60 points or 0.89 per cent to 8,926.20.
The local dollar eked out a small gain and was buying 65.13 US cents at the time of writing.
Banks, consumer discretionary and property stocks led the declines with the market heavy financials slumping 2.51 per cent.
Westpac was the hardest hit of the big four banks down 3.61 per cent to $33.07, while CBA slumped 2.52 per cent to $177.87, ANZ sank 2.50 per cent to $30.05 and NAB slid 2.40 per cent to $38.25.
Consumer discretionary stocks also slumped during Monday's trading.
Wesfarmers fell 0.97 per cent to $83.75, JB Hi Fi dropped 1.48 per cent to $105.91 and Eagers Automotive slumped 3.58 per cent to $18.88.
IG market analyst Tony Sycamore said Monday's sharp fall is the largest since the Liberation Day sell-off in early April and is almost twice the size ASX futures predicted when they closed 49 points lower on Saturday morning.
'In the absence of any fresh news, today's pullback is possibly related to profit taking ahead of the August earnings season which will likely highlight stretched valuations with certain sectors, particularly the banks,' he said.
Meanwhile the major iron ore miners were one of the bright spots on the market, after the price of the underlying commodity continued its march higher.
Iron ore futures rose 1.2 per cent to $US99.50 a tonne.
Shares in BHP rose 0.42 per cent to $40.46, Rio Tinto gained 1.19 per cent to $114.46 while Fortescue climbed 1.47 per cent to $17.25.
In company news, AMP shares jumped 9.77 per cent to $1.68 after announcing its latest results. According to its latest statement AMP's superannuation division posted its first net inflow since 2017, along with growth in its platform and rising assets under management.
Shares in Afterpay's parent company Block soared 11.18 per cent to $122 after cracking the US S & P 500.
Block will replace Hess Corp after it was acquired by Chevron.
Australian home builder AV Jennings is up 1.50 per cent to $0.68 after it announced a fully franked special dividend of 16.7 cents per share on the condition it can be acquired by American real estate firm Proprium Capital Partners.
Shares in Cromwell Property Group jumped 8.22 per cent to $0.40, after announcing Brookfield has signed a binding sales and purchase agreement which is subject to the Foreign Investment Review Board approval.
Investsmart Group shares also soared 9.09 per cent to $0.12 per cent after the business announced a jump in total funds under management and strong performance fees revenue.
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News.com.au
4 hours ago
- News.com.au
Trump, EU chief seek deal in transatlantic tariffs standoff
US President Donald Trump and EU chief Ursula von der Leyen prepared to meet Sunday in Scotland in a push to resolve a months-long transatlantic trade standoff that is going down to the wire. Trump has said he sees a 50-50 chance of reaching a deal with the European Union, having vowed to hit dozens of countries with punitive tariffs unless they hammer out a pact with Washington by August 1. The EU is currently facing the threat of an across-the-board levy of 30 percent from that date. Von der Leyen's European Commission, negotiating on behalf of the EU's member countries, has been pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services. Any deal with the United States will need approval by all 27 member states. EU ambassadors, on a visit to Greenland, were to meet Sunday morning to discuss the latest negotiations -- and again after any accord. Sunday's sit-down between Trump and the EU chief was to take place at 4:30 pm (1530 GMT) in Turnberry, on Scotland's southwestern coast, where Trump owns a luxury golf resort. The 79-year-old American leader said Friday he hoped to strike "the biggest deal of them all" with the EU. "I think we have a good 50-50 chance" of a deal, the president said, citing sticking points on "maybe 20 different things". He praised von der Leyen as "a highly respected woman" -- a far cry from his erstwhile hostility in accusing the EU of existing to "screw" the United States. But late-night EU talks with US Commerce Secretary Howard Lutnick on Saturday to hammer out the final details were "combative at times," The Financial Times reported. As of Saturday evening, there were "still quite a few open questions" -- notably on pharmaceutical sector tariffs, said one EU diplomat. Tariff levels on the auto sector were also crucial for the Europeans -- notably France and Germany -- and the EU has been pushing for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. - Baseline 15 percent - According to European diplomats, the deal on the table involves a baseline levy of around 15 percent on EU exports to the United States -- the level secured by Japan -- with carve-outs for critical sectors including aircraft, lumber and spirits excluding wine. The EU would commit to ramp up purchases of US liquefied natural gas, along with a series of investment pledges. Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario. The EU has focused on getting a deal with Washington to avoid sweeping tariffs that would further harm its sluggish economy, with retaliation as a last resort. While 15 percent would be much higher than pre-existing US tariffs on European goods -- at 4.8 percent -- it would mirror the status quo, with companies already facing an additional flat rate of 10 percent. Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target. Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion through trade measures which involves restricting access to its market and public contracts. But such a step would mark a major escalation with Washington. - Ratings dropping - Trump has embarked since returning to power on a campaign to reshape US trade with the world. But polls suggest the American public is unconvinced, with a recent Gallup survey showing his approval rating at 37 percent -- down 10 points from January. Having promised "90 deals in 90 days," Trump's administration has so far unveiled five, including with Britain, Japan and the Philippines. Early Sunday, ahead of his meeting with Von der Leyen, Trump was out again on the golf course, having spent most of Saturday playing at Turnberry amid tight security. The trip to Scotland has put physical distance between Trump and the scandal around Jeffrey Epstein, the wealthy financier accused of sex trafficking who died in prison in 2019 before facing trial. In his heyday, Epstein was friends with Trump and others in the New York jet-set, but the president is facing backlash from his own MAGA supporters demanding access to the Epstein case files. With the uproar refusing to die down, a headline agreement with the EU -- in addition to bolstering Trump's dealmaker credentials -- could bring a welcome distraction.
Sky News AU
10 hours ago
- Sky News AU
Michaelia Cash urges government to launch independent review into repeal of US beef ban as Albanese and Farrell remain at odds
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West Australian
12 hours ago
- West Australian
Trade Minister Don Farrell clarifies that Anthony Albanese was not directly lobbied by Donald Trump on US beef
One of Anthony Albanese's senior Cabinet ministers has admitted that he was mistaken after claiming Donald Trump personally lobbied the Prime Minister to lift restrictions on US beef imports to Australia. Trade Minister Don Farrell had on Sunday indicated that the US President had raised the issue directly in one of the three phone conversations the leaders have shared. 'Of course, the president of the United States has raised it with the prime minister,' he told Sky. 'I couldn't tell you off the top of my head which of the discussions, but I'm aware that this issue was raised by the president of the United States.' However, the Prime Minister later clarified on ABC that the import ban had only been raised when Mr Trump said it publicly at his 'Liberation Day' tariffs event in April. Asked whether Donald Trump raised the issue directly with him, the Prime Minister replied, 'No. Donald Trump did raise it at the so-called 'Liberation Day'. He raised it publicly, and so his views were well known'. By mid-day, Senator Farrell had clarified in a Nine interview 'I made a mistake' and had confused that White House address with a private conversation between the two leaders. Australia this week lifted a long-standing ban on US beef imports—specifically meat from cattle born in Canada or Mexico but slaughtered in America —following a decade-long, science-based biosecurity review. Agriculture Minister Julie Collins, Mr Albanese and Mr Farrell had said strict standards remained in place and the decision's timing amid tariff threats wasn't suspicious. Mr Trump had declared the move this week a trade triumph for America, calling it a 'golden age of America,' and warning other countries were now 'on notice.' It comes after concern from Opposition and industry that the Albanese government compromised Australia's strict biosecurity rules to appease Mr Trump amid his tariffs regime. Nationals leader David Littleproud and other Coalition figures have questioned whether the decision was truly based on biosecurity and demanded an independent review. Shadow Foreign Minister Michaelia Cash added to Littleproud's calls on Sunday, saying she too would like an inquiry to come before the Senate. 'We now urgently need an independent review into this decision,' she said. 'It could be an independent review. I think it's incredibly important, based on the responses that Minister Farrell has given… that we get the Department in front of us very, very quickly.' Senator Cash also described Senator Farrell's claims on the Trump phone call as an 'extraordinary interview', adding 'there are even more questions now to answer'.
