Share markets falls and Aussie dollar flat as investors deal with latest Trump tariff shock

ABC NEWS (Australia)

The local share market fell again and the Australian dollar was flat as markets continued to absorb yesterday’s decision to leave rates on hold. And the latest developments with American tariffs.

Transcript

00:00Currency and futures traders are not an especially reflective lot dwelling on their failures

00:06and they moved quickly from yesterday's non-rate cut surprise and are now focused on August.

00:11With the futures market 91% certain there will be a cut on August the 12th.

00:15The Aussie dollar duly stayed where it was today.

00:18The share market didn't have time to dwell on interest rates, investors were scrambling

00:21to deal with the latest Trump tariff shock, 50% on copper imports.

00:26Smaller copper producers like Sandfire, Capstone and Evolution Mining were sold off while the

00:31big ones BHP and Rio Tinto were less affected because they are more diversified and also

00:37because the copper price surged 12% to a new record high on use of that new tariff.

00:43Among other commodities gold and silver fell while iron ore and oil went up.

00:47The rest of the share market drifted with banks up and retailers down.

00:51The retirement and downsizer village operator Lifestyle Communities came back after two

00:56days on the sidelines and was seriously downsized itself because the Victorian Civil and Administrative

01:02Tribunal ruled that the deferred management fee in its contracts was void because of a lack

01:07of disclosure.

01:08The company says it will appeal but investors weren't hanging around today.

01:12As for Trump's tariffs, well as well as being a disruption to trade they are also a sales

01:18tax on imported goods and maybe that is the main thing.

01:22Monthly tariff revenue in the US has surged to nearly $30 billion.

01:27And there is more to come.

01:29Right now the effective tariff rate is about 9%.

01:31What has been announced so far will double that over the next few weeks.

01:36And that is finance.

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