The Australian sharemarket started the week on a cautious note, with the S&P/ASX 200 edging down 0.3% to 8,411.5 by midday Monday. The market’s subdued tone followed renewed global trade tensions, as US President Donald Trump’s announcement to double tariffs on steel and aluminium imports sent ripples through global equities and commodity markets.
While six of the eleven ASX sectors traded in the red, utilities led the declines, and major banks like Westpac and National Australia Bank also lost ground. However, the day’s standout story was the surge in BlueScope Steel shares. BlueScope soared as much as 9.4% to hit a three-month high, making it one of the top performers on the ASX 200.
The steelmaker, which generates a significant portion of its profits from US operations, is seen as a key beneficiary of the new US steel tariffs. Market analysts noted that the tariff hike could drive steel prices higher in the US, creating a tailwind for BlueScope’s earnings.
In contrast, aluminium producers and iron ore miners faced pressure. Alcoa and South32 both declined on tariff concerns, while Rio Tinto dropped 2.4% as iron ore prices continued to soften. The broader resource sector remains sensitive to shifting global trade policies and ongoing uncertainty about Chinese demand.
Corporate news provided a counterbalance to the market’s cautious mood. Brickworks and Washington H. Soul Pattinson shares leapt 22.4% and 11.8% respectively after announcing a landmark $14 billion merger. The deal will end more than five decades of cross-ownership and create a diversified powerhouse spanning investments, property, and building products.
The boards of both companies unanimously backed the merger, which is expected to deliver long-term value by combining Brickworks’ property and building assets with Soul Patts’ broad investment portfolio.
Other notable movers included James Hardie, which rose 2.6% after securing $3.5 billion in new debt to support its acquisition of Azek, and Perpetual, up 2.1% on takeover speculation. Meanwhile, Perenti jumped 4.1% after winning a $1.1 billion contract for gold mining operations in Burkina Faso.
As global trade tensions escalate and investors weigh the implications for Australian corporates, the ASX remains a battleground for both risk and opportunity. The market’s focus will remain on tariff developments, corporate earnings, and macroeconomic signals in the days ahead.
