The S&P/ASX 200 Index slipped 0.2% to below 7,960 on Friday, extending losses from the previous session as global trade tensions escalated.
Market sentiment weakened after US President Donald Trump announced a 25% tariff on all car imports starting in April, raising fears of retaliation from major trading partners.
Investors also turned their focus to the Reserve Bank of Australia’s policy decision next week, where the central bank is widely expected to keep interest rates steady.
Markets currently anticipate no rate cuts until at least July.
Financial stocks led the declines, with Commonwealth Bank (-0.6%), Macquarie Group (-0.3%), and ANZ Group (-0.5%) all trading lower.
Health technology stocks also struggled, with CSL Ltd (-0.4%) and Cochlear (-0.8%) posting losses.
Despite the pullback, the benchmark index remains on track for a second consecutive weekly gain.
