In the US overnight, Wall Street extended its losing run as fresh tariffs came into effect on Tuesday, US time. The Dow Jones fell by 1.55%, the tech-heavy Nasdaq lost 0.35% and the S&P500 ended the day 1.22% lower. Investors fear the global trade will impact the health of the US economy with retaliatory tariffs from China, Canada and Mexico in motion already.

Over in Europe, markets closed lower as global investors brace for impact on the ongoing tariff war. The STOXX600 closed over 2.14% in the red, it’s biggest daily drop since August last year. Germany’s DAX fell 3.54%, the French CAC lost 1.85% and over in the UK, the FTSE100 closed Tuesday’s trading session down 3.54%.

The local market was sold off broadly yesterday as investor fears of Trump tariff implications spread through the ASX. The key index fell 0.58% as every sector aside from healthcare stocks ended the day in the red, with energy stocks taking the biggest hit with a more than 3% loss.

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.97% at market open this morning.
• In terms of economic news, GDP growth rate data will be released for Quarter 4 with a consensus and forecast of a 0.5% increase, 0.2% more than its previous result.
• On the commodities front this morning,
   
  • Oil is trading 0.85% lower at 67 US dollars and 75 cents a barrel, gold is trading up 0.82% at 2914 US dollars an ounce and iron ore is trading 5.7% lower at 100 US dollars and 81 cents a tonne following the announcement of new US tariffs on Canada, Mexico and China now taking effect.

Trading Ideas:

• Bell Potter maintains a buy rating on Develop Global (ASX:DVP) and has a 12-month price target of $4. With a current share price of $2.93, this indicates a share price growth of 36.5% over the next 12 months, hence the buy rating is maintained.
• Trading Central has identified a bearish signal on NAB (ASX:NAB), indicating that the stock price may fall from the close of $35.05 to the range of $28.50-$29.75 on a pattern formed over 8 days, according to the standard principles of technical analysis.