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Over in the US on Monday, stocks were heavily sold off in morning trade before recovering some losses in afternoon trade amid news of tariffs between the US and Mexico would be paused for a month as conversations between the presidents of the countries begin. The Dow Jones fell 0.28%, the S&P500 lost 0.76%, and the Nasdaq ended the day down 1.2%.

In Europe overnight markets closed lower after President Trump imposed tariffs on several countries and threatened to expand the tariffs to the European Union and the UK. The STOXX 600 fell 0.93%, Germany’s DAX lost 1.4%, the French CAC fell 1.2%, and, in the UK, the FTSE100 ended the day down 1.04%.

Across the Asia region on Monday negative investor sentiment around Trump’s tariffs spread into the region with Japan’s Nikkei falling 2.66% while South Korea’s Kospi lost 2.52%, Hong Kong’s Hang Seng dropped just 0.04% and, China’s CSI index remained closed for the Lunar holiday.

The local market started the new trading week with a significant sell-off, closing Monday’s session down 1.79% with every sector ending the day lower as investors reacted to the downside risk of flow through effects into our economy from Trump’s tariffs announced over the weekend.

Over the weekend President Trump introduced 25% tariffs on Canadian and Mexican imports and an additional 10% tariff on Chinese goods, which led Canada to retaliate with a 25% tariff on US goods into Canada.

There were few stories of good news on the market on Monday, but Lynas Rare Earths led the ASX200 gains with a rise of 3% despite no news out of the rare earth’s producer. The possible catalyst for the rise in the share price may be due to Gina Rinehart’s Hancock

Prospecting buying up shares in the rare earth’s producer over recent days.

Magellan shares also tumbled 8.7% yesterday following the departure of the company’s long-standing boss Gerald Stack.

What to watch today:

• Ahead of Tuesday’s trading session on the ASX, the SPI futures are anticipating the ASX will open the day up 0.47%.
• On the commodities front this morning oil is trading 0.26% higher at US$72.71/barrel, gold is up 0.8% at US$2819/ounce, and iron ore is up 0.26% at US$101.59/tonne.
• The Aussie dollar has slightly weakened against the greenback to buy US$0.61, 95.55 Japanese Yen, 49.82 British Pence and NZ$1.11.

Trading Ideas:

• Bell Potter has slightly decreased the 12-month price target on Aeris Resources (ASX:AIS) from 34cps to 29cps and maintain a buy rating on the multi-mine copper and gold producer following the release of the company’s December quarter update. Production at the company’s Tritton mine fell short of Bell Potter expectations while AISC topped BPe, while the company’s Cracow mine produced more gold at a lower cost than BP was expecting. The company’s near-term outlook is highly leveraged to the copper price and increasing grades and production at its Tritton copper mine.
• And Trading Central has identified a bearish signal on Bravura solutions (ASX:BVS) following the formation of a pattern over a period of 7-days which is roughly the same amount of time the share price may fall from the close of $2.11 to the range of $1.93 to $1.97 according to standard principles of technical analysis.