Selling has intensified for local shares on Tuesday with the escalation of US-China trade tensions. China announced Monday that it will raise tariffs on $60 billion worth of U.S. goods, beginning on June 1. The goods targeted include a broad range of agricultural products. Last week, U.S. President Donald Trump raised duties on $200 billion in Chinese goods to 25% from 10%.
Shares of materials sector closed into the green, boosted by Fortescue's 7.4% jump after announcement of a massive special dividend. Mining behemoth BHP Group was off 1.1% at close, however, rival Rio Tinto reversed course from early losses to end slightly higher.
Financials were the main drag on the broader market as the big four banks eased by 1% or more. Westpac was down 1.5% while National Bank dropped 5.3% as it trades ex-dividend. IOOF Holdings and Challenger Ltd closed 6% and 3.4% lower, respectively.
ECONOMIC NEWS: Australian consumer confidence fell by 2.1% last week from the prior week, according to an ANZ-Roy Morgan survey. Confidence around economic conditions dropped sharply, however, with current economic conditions down 8.1%, continuing a recent volatile pattern, and future economic conditions falling 3.3%.
CURRENCY NEWS: The Australian dollar declined against the U.S. dollar on Tuesday, as trade tensions intensify. The Australian dollar was quoted at 69.86 US cents, having been as high as 70.08 US cents during late US trade.
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