The news: Australian shares are poised to drop at the open, tracking steep losses on Wall Street after US President Donald Trump unveiled new tariff plans, including levies on major trading partners such as Japan, South Korea and South Africa.
The numbers: Updated at 7:30am AEST:
ASX futures: down 47 points to 8,526Wall Street: Dow Jones down 0.94%, S&P 500 down 0.79%, and Nasdaq down 0.92%Europe: CAC 40 up 0.35%, DAX up 1.20%, and FTSE 100 down 0.19%Spot gold: down 0.02% to US$3,337 per ounceOil prices: Brent down 0.03% to US$69.56/bbl, and US WTI up 1.37% to US$67.92/bblAUD: down 0.86% to 64.99 US centsBitcoin: up 0.08% to US$107,991.
The context: Wall Street stocks retreated from all-time highs overnight after Trump announced tariffs of 25% to 40% on nations including Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, starting 1 August.
Trump also warned of an extra 10% tariff on any country aligning with “the Anti-American policies of BRICS.”
Electric car maker Tesla slumped 6.79% after chief executive Elon Musk announced the formation of a new political party named the “America Party“, further escalating his feud with Trump.
Meanwhile, the RBA will wrap-up its two-day board meeting today, with economists expecting the central bank to announce a 25 basis point cut to the official cash rate.