Market Wrap: ASX200 closes heavily in the red on economic uncertainty

The Australian sharemarket was hammered on Friday as escalating global trade tensions and the risk of a US recession continued to unsettle investors.

The ASX 200 hit a six month low during Friday’s trading Picture Newswire/ Gaye Gerard.

A changing approach from US President Donald Trump failed to calm investors with billions wiped off the Australian sharemarket on Friday, as shareholders brace for an extended trade war.

The benchmark ASX200 index closed sharply in the red on Friday, down 146.5 points or 1.81 per cent to 7,948.20.

The broader All Ordinaries also dropped, down 147.90 points or 1.78 per cent to 8178.50.

The Aussie dollar is trading around US63.02c.

In a broad market sell off, 10 of the 11 sectors finished in the red, with only consumer staples closing in the green. Shares in information technology, A-REITs and financials fell by more than 2 per cent.

The ASX200 hit a six month low during Friday’s trading. Picture Newswire/ Gaye Gerard.

Financials were a major drag on the market, with Commonwealth Bank tumbling 3.31 per cent to $148.50, NAB losing 0.95 per cent to $34.26, Westpac dropping 2.2 per cent to $30.57 and ANZ slipping 2.41 per cent to $28.67.

It was a weak day of trading for the major miners with the price of iron ore falling again, down 0.5 per cent to $US100.7 per tonne.

BHP fell 0.63 per cent to $38.98 and Fortescue fell 1.17 per cent to $15.92. Rio Tinto bucked the trend, finishing in the green up 0.28 per cent to $115.20.

The fallout from President Donald Trump has seen Australian investors lose more than $200bn wiped off the ASX 200 since mid February, when the market hit an highest.

IG market analyst Tony Sycamore described Friday’s market as “bleak” with “a lot of uncertainty.”

“The way (Mr Trump) is going about it is truly frightening and that is parlaying through into our stock market, so things aren’t looking particularly flashy right now,” he said.

AMP chief economist Shane Oliver said the Trump tariffs were “erratic” over the week.

“Global share markets were mixed over the last week,” he said.

Ten of the 11 sectors finished in the red. Picture: NewsWire / Max Mason-Hubers

“US shares were whacked by ongoing tariff uncertainty and this also weighed on Japanese shares, Chinese shares were also buoyed by news of more stimulus,” Dr Oliver said.

“Australian shares fell around another 2.7 per cent taking the ASX 200 back below the 8000 level as tariff announcements out of the US added to uncertainty.”

The ASX tumble followed a rough trading session on Wall Street overnight on Thursday, despite President Donald Trump removing some of the tariffs on Mexico and Canada.

The Dow Jones slid 427.51 points or 0.99 per cent to 42,579.08 points, while the S&P500 dropped 1.78 per cent to 5,738.52.

The tech heavy Nasdaq composite tumbled 2.61 per cent to 18,069.26 and is now officially in a correction, which is when an index falls 10 per cent from a recent high.

Mr Trump said the White House would postpone 25 per cent tariffs on some imports from Canada and Mexico, amid fears of the economic fallout on the US with a trade war.

The exemptions covering the US’s two largest trading partners will expire on April 2 and is the second time the government has delayed tariffs since they first came into effect in early February.

In company news, reports say Star Entertainment will receive a $53m lifeline with its Hong Kong joint venture partners confirming they will buy its stake in Brisbane Queen’s Wharf Development, giving the business a much needed cash boost.