AXJO extends losses from Friday
Wisetech Global top loser on ASX 200
CBA and CSL among companies due to report earnings this week
By Roshan Thomas
Feb 10 (Reuters) - Australian shares ended lower on Monday, extending their declines from Friday, dragged down by profit-booking in financials and miners after U.S. President Donald Trump threatened fresh tariffs on steel and aluminium.
The benchmark index S&P/ASX 200 .AXJO dropped 0.3% to 8,482.8 points. It had closed 0.1% lower on Friday.
Trump on Sunday announced plans to impose fresh tariffs of 25% on all steel and aluminium imports into the U.S., adding to the existing metal duties in another major escalation of his trade policy.
"Investors are wondering which other industries or countries could be targeted next by the Trump administration. So it's a combination of trade war fears and uncertainty which is denting sentiment today," Tim Waterer, chief market analyst at KCM Trade said.
"We need to wait and see the specifics of the tariff measures to find out whether Australian companies will have some problems to deal with."
In Sydney, miners .AXMM shed 0.7% on declining iron ore prices. IRONORE/
BHP Group BHP.AX lost 1% and Rio Tinto RIO.AX dropped 1.2%. Fortescue FMG.AX slipped 1.5%.
Banks .AXFJ slid 0.2%, with the National Australia Bank NAB.AX and ANZ ANZ.AX down 0.4% and 0.3%, respectively.
"Financials have been the top performing sector on the ASX so far this year. So it's not surprising to see the banks coming under selling pressure when the overall index is in the red on profit-taking moves," Waterer said.
In company news, WiseTech Global WTC.AX slumped 4.4% after two confidential complaints from an employee and a contractor against its founder and founding CEO Richard White.
Earnings reports from a number of Australian heavyweights, including the Commonwealth Bank Australia CBA.AX and CSL CSL.AX are due this week.
"We might be looking at subdued earnings given the high interest rate environment and the inability of the Australian economy to garner much forward momentum," Waterer said.
New Zealand benchmark S&P/NZX 50 index .NZ50 slid 0.2% to 12,876.35 points.
(Reporting by Roshan Thomas in Bengaluru; Editing by Sumana Nandy)
((Roshan.Thomas@thomsonreuters.com))
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