Top 10 at 11: ASX falls as tariffs bring headwinds

Morning, and welcome to Stockhead’s Top 10 (at 11… ish), highlighting the movers and shakers on the ASX in early-doors trading.

With the market opening at 10am sharp eastern time, the data is taken at 10.15am in the east, once trading kicks off in earnest.

In brief, this is what the market has been up to this morning.

In the cold hard light of morning

News the EU had managed to secure a trade deal with the US was enough to soothe markets yesterday, lifting a solid 0.36% on broad market gains.

This morning, the truth of the matter is sinking in.

While avoiding the 30-50% tariffs on EU goods Trump had been threatening was definitely a win for the global economy, the overall increase in tariffs is still a net loss.

In 2022, the trade weighted average global tariff was about 4%.

Obviously, there are a huge range of trade agreements and regional or sector specific tariffs are common, but something like two thirds of all global trade was entirely tariff free.

The new reality is looking closer to a 15% tariff on most goods, a 3-fold increase, and that’s going to have long-term and far-reaching effects on the global economy.

The ASX fell as much as 0.33% in the first hour this morning, with 8 of 11 sectors retreating.

The financials sector is leading losses, down 0.75%, while energy mounts a resistance, climbing 0.37% on a 2% lift in oil prices overnight.

WINNERS

In the news…

LiDAR-based logistics company Beonic (ASX:BEO) has secured a contract to deploy its passenger flow management technology across seven major international airports in north Africa.

BEO reckons the contract is worth about $10.6m over its 2.5-year term, with an option to extend for another 3 years. The company is already operating in the London Heathrow, JFK Terminal 4, Narita and Abu Dhabi airport hubs.

Back in July 2024, regenerative medicine company Osteopore (ASX:OSX) inked an exclusive agreement with a subsidiary of Zimmer Biomet Holdings to distribute OSX craniofacial products in Europe, the Middle East and Africa, and the Asia Pacific.

In the first 12 month of the partnership implant sales in Europe, Australia and Hong Kong tripled compared to the year before. Management says it’s clear evidence of the market’s appetite for OSX products and demonstrates the resilience of Osteopore’s manufacturing capability.

LAGGARDS

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.