...XGD has plunged -8.13%, XJO -6% Gold -1.65% while AUD Gold-0.30%
....Where is the safe haven?
....Gold stocks are not Gold. ASX dives at the open as miners sink
Nicola Blackburn
The Australian sharemarket tumbled at the open, led by mining companies, after China escalated the global trade war, raising fears of a global recession.
The benchmark S&P/ASX 200 sank 480.9 points, or 6.3 per cent, to 7186.9 in the first 10 minutes of trade, tracking a heavy sell-off on Wall Street that pushed the Nasdaq into a bear market. US futures point to equally heavy selling later tonight.
The S&P 200 is now trading well into correction territory, extending its losses from its recent hit to 14.7 per cent. Further losses will push the benchmark gauge into a bear market – that is a decline of 20 per cent.
China retaliated against the Trump administration’s tariffs, dimming hopes of a deal between the two superpowers. Beijing announced an additional 34 per cent tariff on goods from the United States, the same rate imposed by Washington.
That is ahead of America’s country-specific reciprocal tariffs coming into effect April 9, following a 10 per cent levy that is already active on all nations.
“Given the even bigger threat to global growth flowing from Trump’s latest round of tariffs, it looks like share markets will have a further leg down. Our assessment has been that global and Australian shares will have a 15 per cent plus correction measured from this year’s high,” said Shane Oliver, head of investment strategy at AMP.
