ASX 200 experiences slight decline amid mixed market signals and tariff concerns
The Aussie market saw a slight decline on Friday, with the ASX 200 down 0.1 per cent as investors considered US data and tariffs. The big four banks performed well, while Domino's shares surged after a store closure announcement.
It was a mixed day for the Aussie market as investors digested key data from the US and the implications of upcoming tariffs on global economies.
The benchmark ASX 200 index was relatively flat on Friday, closing down 9.3 points or 0.1 per cent at 8511.4 points.
Meanwhile, the broader All Ordinaries closed down just 4.80 points or 0.05 per cent to 8,780.30.
The Aussie dollar slid slightly, down 0.1 per cent to 62.79 US cents.
On the local market, six of the 11 sectors rose, led by information technology, consumer staples, and the materials sector.
Despite more sectors rising, the market still fell, as energy and healthcare lost more than 1 per cent during Friday's trading.
The Index see-sawed throughout the trading day as investors awaited the US January jobs report to be released on Saturday morning Australian time.
Capital.com senior financial market analyst Kyle Rodda noted, "economists are essentially forecasting a Goldilocks print, with the economy projected to have added 169,000 jobs in January and an unemployment rate remaining unchanged at 4.1 per cent, along with moderated wage growth at 3.8 per cent."
It was a strong day for the big four banks. CBA rose slightly by 0.018 per cent to hit a fresh record high of $162.97. Westpac also reached a new record high of $34.17 while NAB hit a fresh 18-year high of $40.70, after growing 0.79 per cent on Friday. ANZ also had a strong day, up 0.19 per cent to $31.01.
AMP chief economist Shane Oliver stated that the dominant narrative on the market throughout the week remained tariffs. US President Donald Trump this week imposed 10 per cent tariffs on China, which is much lower than the 60 per cent he had threatened during the campaign.
However, the US also paused 25 per cent tariffs for Canada and Mexico for a month, giving investors hope that a similar outcome could occur with China. "It's not a big weekly fall. We were at a record last Friday so for all intents and purposes we are still around record highs despite the tariff uncertainties," Dr Oliver remarked.
Another influencing factor was the bond yield aspect. Scott Bessent, the treasury secretary in the US, remarked he and Trump wanted to lower bond yields, which led to a fall in yields.
"This had a flow-on effect to markets including Australia, as it helped improve valuations," he explained.
In company news, shares in pizza retailer Domino's soared on Friday after announcing a plan to close 200 of its underperforming stores. Shares jumped 21.30 per cent to $35.93 on this news.
Domino's confirmed in a statement to the ASX it was closing over 200 stores, including one in six of its outlets in Japan, to reduce the number of loss-making restaurants amid investor unease and falling sales.
The store shutdowns will incur a near-$100 million cost for Domino's but are expected to generate cost savings for the group from the 2026 financial year.
