Australian share market claws back ground to close | Australian Markets

A counterattack that recovered half of the Australian share market’s early losses has buyers hoping they’ve seen off the worst of a international rout that has wiped 4 per cent from the worth of native shares previously week.

Having crashed 1.8 per cent on Friday, the S&P-ASX200 tumble repeated the loss in early trading on Tuesday earlier than stabilising and clawing back ground to close 0.9 per cent decrease at 7890.1 factors as US stock futures turned optimistic.

Buyers have turn into more and more nervous about US President Donald Trump’s barrage of supposedly business-friendly insurance policies, and the jitters intensified when he refused on the weekend to rule out a recession because the world’s greatest economic system digests his tariffs and authorities spending cuts.

After the tech-heavy NASDAQ Composite misplaced 4 per cent and the S&P500 2.7 per cent, native shares inevitably had been pummelled, with the S&P-ASX200 plunging to a contemporary seven-month low of 7818.3 factors.

Know-how was the most important loser, monitoring the in a single day US falls, shedding 4 per cent, as simply three of the ASX’s 11 sectors completed within the inexperienced.

The barometer closed at 7890.1 and has now misplaced 4.2 per cent over its previous seven trading classes, with tech and vitality down more than 7 per cent.

Simply 26 of the index’s 200 firms have recorded features for the period, together with WA goldminers West African Assets (18 per cent), Bellevue Gold (5.5 per cent) and Gold Highway Assets (0.4 per cent).

Among the many State’s heavyweights, nevertheless, South32 is off 1.1 per cent since March 3, Wesfarmers 4.7 per cent, Fortescue 6 per cent and Woodside 8.2 per cent.

Funding bank Citigroup mirrored the altering international temper on Mr Trump’s administration by downgrading US shares to impartial and raising China to obese, saying the US economic system could no longer outpace the remaining of the world within the coming months.

Chinese language shares have been on a tear this yr, partly due to the emergence of an artificial intelligence model from DeepSeek that’s seen difficult the US dominance within the sector.

“In the big picture, US equity outperformance may well return when the Ai narrative takes over again, but in the coming months, we expect US growth momentum to undershoot the (rest of the world),” Dirk Willer, Citi’s international head of macro, asset allocation and rising market strategy, stated.

Extra than $US4 trillion has now been wiped from S&P500 since final month’s file high, with the 8.6 per cent loss approaching the ten per cent that represents a correction.

Buyers have been spooked by the inferences from the Trump camp that the new administration is ready to push the US into recession to attain its tariff targets and authorities workforce cuts.

That’s been a wake-up call for many who had welcomed his ascension on the idea that his pro-growth agenda of tariffs, decrease taxes and decreased regulation would benefit shares.