ASX 200 Ends Mixed as Tariff Concerns Weigh

• ASX 200: Early gains faded amid profit taking wave
• Goodman Group: Shares climbed nearly 2% and edged closer to the 200-day EMA.
• Rio Tinto: Dropped 2% despite an RBC target price upgrade, with copper prices still stagnant.
• Woolworths: Edged higher with rising volume, with the AU$27 level emerging as short-term support.

The Wednesday session was somewhat volatile for the ASX 200. Traders began the day buying stocks, but by the close there was notable profit taking. As a result, candlestick patterns looked muted, even as the index held firm at key support levels.

A major trend line lies just beneath, with the 50-day EMA sitting close by. The ASX 200 has remained in an uptrend for some time, though global indices are starting to show signs of hesitation. Tariff concerns and the slowdown in global trade pose risks for Australia, given its reliance on commodity exports to countries such as China and South Korea.

Goodman Group (GMG)

Goodman Group rallied almost 2% during the trading session, showing strength as it moves toward the 200-day EMA. Over the past month, the stock has slipped 5.51%, but it remains up 0.30% over the last 12 months.

The real estate group holds a market cap of AU$68.42 billion and recently received a 3.2% upward target price revision from Morgans, lifting the target to AU$38.40. The market appears to be finding a base, with rising volume signalling growing interest.

RIO Tinto Limited (RIO)

Rio Tinto gapped lower on Wednesday, falling 2.03% to close at AU$114.57. Over the past month, the stock has gained 0.84%, and over the last year, it is up 6.97%.

RBC recently raised its target price for RIO on the London exchange from 4800p to 5000p, which made the midweek drop appear somewhat puzzling. At the same time, the expansion of the US critical minerals list ahead of potential tariffs may have weighed on sentiment.

Copper remains a key factor to watch, as prices have been largely stagnant. This could continue to play an important role in RIO’s performance going forward.

Woolworths Group Limited (WOW)

Woolworths gained 1.12% on Wednesday, though momentum remains weak. The stock has fallen 11.36% over the past month and is down nearly 20% for the year.

Following the sharp gap lower during the earnings session on 27 August, trading volume has started to pick up. The AU$27 level appears to be acting as a floor, with signs that some buyers are stepping back in.

Jeffries has noted that Woolworths faces only a relatively modest one-off cost linked to a staff underpayments ruling. This court decision may be seen as less impactful over time, allowing focus to return to broader market factors.

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