ASX 200 slumps on global recession fears

The ASX 200 was smashed again on Monday as investors fear the worst of Donald Trump’s aggressive tariff policy.

It was a sea of red on the ASX 200, with investors continuing to sell down on fears of a global recession.

The benchmark ASX 200 index was smashed on Monday dropping 324.50 points or 4.23 per cent to 7,343.30.

The broader All Ordinaries also slumped 323.30 points or 4.12 per cent to 7,524.30.

The Australian dollar recovered during the day’s trading and is now buying 60.02 US cents.

Despite a significant bounce from the opening bell, the ASX 200 still lost $97bn during Monday’s trading, with all 11 sectors finishing in the red.

President Donald Trump said backed his tariff policies. Picture: NewsWire / AP Pool

The selling was widespread, with only 10 stocks out of the 200 finishing up on Monday’s trading.

All four of the index heavy major banks finished in the red.

Australia’s largest bank CBA slumped 6.23 per cent to $144.41, NAB dropped 4.48 per cent to $32.19, Westpac dropped 5.61 per cent to $29.25. ANZ was the best of the big four but still slumped 4.79 per cent to $26.83.

Meanwhile the three major iron ore miners are all heavily on the red. BHP plummeted 6.11 per cent to $34.57, while Rio Tinto is down 3.82 per cent to $108.40 and Fortescue Metals dropped 3.57 per cent to $14.32.

IG market analyst Tony Sycamore said global markets were spooked by the prospect of a global recession.

“The old saying goes, when the US sneezes the world catches a cold,” he said.

Global investment banks over the weekend factored in between a 45 to 60 per cent chance the US will head into a recession following the announcement of US President Donald Trump’s tariffs.

Major trading partners, including the second largest economy, China, have slapped reciprocal tariffs on the US, sparking concerns of an all out trade war.

Mr Sycamore added the Chinese economy is already in a “tight situation” with the US adding trade barriers creating a “dire situation” for world markets.

“We can certainly have two quarters of negative growth in Australia if the tariffs continue on,” he said.

All 11 sectors on the ASX finished heavily in the red. Picture: NewsWire/ Gaye Gerard

“Remember Australia’s growth wasn’t particularly flash before the tariffs, so it wouldn’t take much to tip it back down towards potentially negative growth.”

It was also a weak day for energy stocks, after the price of crude oil fell.

Global benchmark Brent fell 2.6 per cent below $US64 a barrel, towards a four-year low. Santos sank 9.8 per cent to $5.37, Woodside 5.8 per cent to $19.25. Petrol producer Ampol plunged 7 per cent to $21.01.

Australia’s market was not alone in the mass trade off.

The Hang Seng was down by as much as 11 per cent and the Nikkei and mainland Chinese indices were off by 6 per cent — with several hours left in trade.

US future markets were also heavily in the red with the S & P 500 looking at a 3.6 per cent fall when it opens overnight, and the tech-heavy Nasdaq Composite is tipped to drop 4.5 per cent.

Originally published as ASX 200 slumps on global recession fears