ASX 200 Continues to See Volatility After Tariffs Announced

• ASX 200 is one of the first to react to tariffs.
• Volatility and losses across the board.
• Luckily, most stocks look like the bottom still holds.

During Monday’s trading session, the ASX 200 experienced heightened volatility following the weekend announcement that the United States would impose a 25% tariffs on Canada and Mexico, along with a 10% tariff on Chinese goods. Additionally, Canada and the US have threatened retaliatory measures, while Donald Trump suggested that there would be potential tariffs on the European Union.

This has significant implications for the ASX 200, given Australia’s strong commodity export ties, particularly with China. Furthermore, there is the squashing of the loophole called “de minimus”, which allows goods to be tariff-free if they are under $800. This will massively influence Chinese trade with the United States, as companies have long used it to sidestep tariffs by breaking larger shipments into smaller ones.

ANZ Group Holdings (ANZ)

ANZ Group Holdings is down 1.37% for the trading session on Monday, closing at AU$30.20. However, the financial giant has rallied 10.79% over the past year as traders continue to focus on interest rate trends and key technical levels. The AU$30 mark has been a significant support zone multiple times, making its current test crucial. Despite the volatility, ANZ recovered from a sharp drop to close near its opening price. Although it ended in the red, the session could have been much more bearish.

Woolworths Group (WOW)

Woolworths kicked off the trading week with a gap down losing 1.38% to settle right around the AU$30 level. The past year has been challenging for the consumer staples giant, with a 17.56% decline over the last 12 months. That said, the stock has been forming a basing pattern and the upcoming earnings call on 26 February could provide some much-needed direction. Traders are closely watching to see if this level marks a true bottom. The longer it holds steady, the more likely buyers will start accumulating positions.

Rio Tinto (RIO)

Rio Tinto dropped 2.12% during the trading session on Monday, as the AU$114 level continues to be tested. As a key supplier of raw materials worldwide, the stock often serves as a proxy for global trade and economic growth. Right now, it sits near the bottom of a broader consolidation range, with the support level holding steady so far. Given this setup, range-bound traders may continue to find opportunities, watching closely to see if buyers step in at these levels.

Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.