FX.co ★ Australian Shares Extends Fall

The S&P/ASX 200 experienced a 0.4% decline, closing at 8,840 on Tuesday, prolonging the downturn from the prior session. This slump reflects the prevailing cautious sentiment in the markets, fueled by escalating trade tensions between the United States and Europe. President Donald Trump has issued a warning that several European nations, including Denmark, Norway, Sweden, Finland, Germany, France, the Netherlands, and the United Kingdom, might encounter an additional 10% tariff if an agreement regarding Greenland is not achieved. Compounding the somber market mood, the International Monetary Fund has advised the Reserve Bank of Australia to proceed with caution, highlighting that inflation has consistently surpassed the RBA's 2%-3% target band for a prolonged period, despite the fact that the headline CPI dropped more rapidly than anticipated in November. Financial sector stocks faced downward pressure, with Commonwealth Bank, Westpac, NAB, and ANZ experiencing declines ranging from 0.5% to 0.8%. Additionally, leading mining companies, including BHP Group, Rio Tinto, and Fortescue, saw their shares dip between 0.3% and 0.7% after BHP exceeded cost estimates yet again at its flagship Jansen potash project in Canada.