Australian shares end lower as tariff risks trigger rush into safe havens

By Anjali Singh

Jan 19 (Reuters) - Australian stocks finished lower on Monday, as investors piled into safe-haven assets following U.S. President Donald Trump's threats of extra tariffs on some European countries until the United States was allowed to buy Greenland.

The S&P/ASX 200 .AXJO closed 0.3% lower at 8,874.5 points, marking its steepest one-day decline in nearly two weeks. The benchmark gained 2.1% last week, its best week since late November.

Gold miners .AXGD surged 2.9% to a record high, with bullion prices notching a fresh peak as investors rushed into the assets with exposure to gold following a fresh wave of tariff-related risks.

Trump threatened eight European nations with additional tariffs until the United States is allowed to buy Greenland.

"We are seeing capital flows to gold and precious metals as a 'safe-haven' trade, given the elevated geopolitical risks from Trump's recent comments about Greenland," said Luke Winchester, portfolio manager at Merewether Capital.

"Base metals and banks are victims of this rotation, as well as the risk that Trump's preferred negotiating tactic of tariffs will impact trade and GDP if fully implemented."

The broader mining index .AXMM ended 0.6% higher, largely driven by gold miners. BHP BHP.AX fell 0.5% and Fortescue FMG.AX lost around 2%, while Rio Tinto RIO.AX gained 0.8%.

Gold miners Northern Star Resources NST.AX and Evolution Mining EVN.AX climbed over 3% each.

Financials .AXFJ, which are on track for their weakest January since 2022, lost 0.6%, with the "big four" banks slipping between 0.4% and 1.1%.

Technology stocks .AXIJ fell 2.5% to a nine-month low, while the healthcare sector .AXHJ slid 0.6%. Discretionary .AXDJ and consumer staple .AXSJ firms slipped 0.8% and 0.6%, respectively.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 ended 1% lower at 13,580.29, posting its worst session in nearly two months.