ASX slumps on wobbly miners after China stimulus disappoints | Jessica Amir

An article in The Sydney Morning Herald titled "ASX slumps on wobbly miners after China stimulus disappoints" discusses the performance of the Australian stock market this week. The market was affected by investor disappointment over China's latest stimulus measures and concerns about a supply cut, which led to a sharp drop in iron ore prices. The S&P/ASX 200 index closed down by 28.9 points, with four sectors declining, the most significant being the materials sector. However, property stocks, bank stocks, and tech stocks performed well.

The article quoted moomoo Market Strategist Jessica Amir, she stated that, despite the lag in the index on Monday, the overall trend for the Australian Securities Exchange (ASX) remains positive, supported by the outlook of tax cuts and regulatory easing for US companies.

However, Jessica also cautioned that if the US imposes tariffs on China, it could have a significant impact on the Australian stock market.

"The more buying of the US dollar and the higher that goes, the more it hurts the Aussie share market and puts pressure on commodity prices, and stocks go down," Jessica said, "it's not all about China's [stimulus], but Trump's business policy such as tariffs."

"Gold is down today, every commodity price is suffering a 2 per cent loss because we have a higher US dollar, and traders are betting that Donald Trump will put tariffs on China."

"Iron ore stocks have fallen heavily today – it is now down 3 per cent because we didn't get the stimulus we wanted out of China. Investors are taking profits off the table and de-risking commodities, and they are rotating to the key benefactors that will benefit from the new president and the new policies coming in."

Jessica added that it is "not all doom and gloom."

"Yes, the Aussie share market has stepped down today, but Aussies are aware that we are in a stock-picker's market, and they're buying anything that is going to benefit from the reduction in US interest rates and from Trumps pro-business stance."

Click the link to view the full article：Markets today: Wall Street rises, China plans disappoint, ASX set to slide