Australia’s economy demonstrated resilience with a 0.6% growth in the fourth quarter of last year, according to the latest data. However, market sentiment remains cautious as traders digest ongoing stimulus measures from China and increasing uncertainty surrounding US trade policies. The ASX experienced a notable dip, reflecting broader concerns about the potential impact of these policies on global trade and economic stability. Coles and Woolworths saw significant declines, indicating potential consumer concerns amidst the economic landscape.
Meanwhile, Donald Trump’s recent actions, including new tariffs, are causing turmoil in financial markets. The US President is addressing Congress amidst this volatility. Justin Trudeau has criticised Trump’s policies. BlackRock has also acquired Hutchison’s Panama ports. Investors are struggling to adapt to the rapid policy changes, with no clear playbook available to navigate the uncertainties. The potential for escalating trade tensions and protectionist measures has created an environment of heightened risk aversion, impacting investment decisions and market performance globally.