Australian shares in red as Trump’s attack on Fed spooks market – Markets

Australian shares fell on Tuesday, with traders fretting about the Federal Reserve’s independence following US President Donald Trump’s verbal tirade against Fed Chair Jerome Powell.

The S&P/ASX 200 index, which resumed trade after a two-day holiday, fell 0.5% to 7,778.1 points by 0103 GMT.

The benchmark had gained 0.8% on Thursday.

The US economy could slow unless interest rates are cut immediately, Donald Trump said, repeating his criticism of Powell, who says rates should not be lowered until it is clearer that Trump’s tariff plans won’t lead to a persistent surge in inflation.

Trump’s comments sparked fears that the Fed will not be able to move freely with its monetary policy, sending stock markets lower and bond yields higher.

The soured investor sentiment spilled over to the Australian market and all the major sectors traded in red.

Miners fell 0.2%, with BHP Group slipping 0.2% and iron ore miner Rio Tinto trading flat. Rate-sensitive financials shed 0.3%.

The “Big Four” banks dropped between 0.2% and 0.9%.

Australian shares end little changed as miners fall offsets broader gain

In corporate news, Japanese investment bank Nomura said it would buy Macquarie Group’s public asset management operations in the US and Europe for A$2.8 billion ($1.8 billion).

The deal marks the latest major overseas acquisition by a Japanese firm as companies facing a shrinking domestic market seek out growth opportunities abroad. Health stocks fell 0.8% and the IT stocks lost 1.8%.

The energy sector slumped 1.6%, tracking lower oil prices.

Woodside Energy shed 1.5% and its smaller peer Santos dipped 0.5%.

Bucking the trend, gold stocks rose 1.5% as investors flocked to safe-haven bullion, which hit a record high as slowdown concerns drove demand.

Meanwhile, early voting in the Australian election began with the incumbent Prime Minister’s centre-left Labor Party holding a slim lead over the conservative opposition coalition.

New Zealand’s benchmark S&P/NZX 50 index fell 0.8% to 12,018.62 points as of 0103 GMT.