Australian shares experienced significant fluctuations early on Wednesday, resulting in tens of billions of dollars being wiped off the market. Concerns over the potential of a full-blown trade war between the world’s two largest economies, China and the United States, were cited as the main reason. The S&P/ASX 200 index initially dropped by more than 2%, erasing the previous day’s gains, before recovering to a 1% decline by midday. Mining companies and Australia’s largest biotech company, CSL, were particularly affected by the decline, with both experiencing drops of over 4%. The price movements mirrored a volatile session on Wall Street and came just before the US was set to implement additional tariffs on China. Analysts warned that the Australian economy would likely be impacted by these trade barriers, with potential for another round of risk aversion if China decided to dig in its heels. The Commonwealth Bank chief economist, Luke Yeaman, stated that while Australia is relatively well-equipped to weather the storm, the country would still feel the effects of a prolonged trade war. The Australian dollar also experienced fluctuations in response to the trade tensions, making it more costly for travelers and consumers buying international goods.

Source: https://www.theguardian.com/business/2025/apr/09/asx-200-australian-shares-bhp-csl-stock-market-plunge-us-china-trade