Australian shares struggled for direction on Monday as losses in banks and technology stocks countered gains in commodity stocks, while uncertainty regarding U.S. President Donald Trump’s tariffs prompted investors to seek refuge in safe-haven assets.
The S&P/ASX 200 index rose 0.2% earlier in the session but reversed all of it to end the day 0.1% lower at 8,570.40 points.
The benchmark had lost 0.3% last week.
Over the weekend, Trump’s latest tariff move – imposing a 30% levy on most imports from the European Union and Mexico - further stirred the pot.
The lack of clarity on Trump’s plans, including a potential 200% tariff on Australian pharmaceuticals, has spooked investors and sent them seeking solace in safe-haven assets.
On the Sydney bourse, gold stocks rose 1.9% on safe-haven demand and higher prices of the yellow metal. Evolution Mining and Northern Star Resources - both gold miners - soared 1.6% and added 1.8%, respectively.
Mining stocks rose 0.9%, with the index hitting its highest since February 25 on the back of higher iron ore prices. Rio Tinto and BHP Group, major iron ore miners, rose 0.9% and 1.1%, respectively.
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Energy stocks gained 0.5% as oil prices rose on the hopes that the further U.S. sanctions on Russia could unsettle global supplies.
Oil and gas majors Woodside Energy and Santos each added 0.5%.
Investors sought refuge in miners, dumping bank stocks amid market uncertainty, as the former showed it can thrive in volatile conditions, said Grady Wulff, senior market analyst with Bell Direct.
Financials lost 0.3%, with three of the “Big Four” banks falling between 0.3% and 0.9%, while the National Australia Bank rose 0.4%.
The technology sub-index shed 0.4%, tracking its U.S. peers, with sector major WiseTech Global losing 1.3%.
New Zealand’s benchmark S&P/NZX 50 index ended the largely flat at 12,678.69 points.
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