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Australian Market Notably Lower

The Australian stock market is notably lower on Tuesday following the overnight sell-off on Wall Street amid worries about rising U.S.-China trade tensions after China announced tariffs on about $60 billion worth of U.S. goods in retaliation for the U.S. decision to raise tariffs on about $200 billion worth of Chinese imports.

The benchmark S&P/ASX 200 Index is losing 74.40 points or 1.18 percent to 6,223.20, after touching a low of 6204.70 earlier. The broader All Ordinaries Index is down 72.80 points or 1.14 percent to 6,308.50. Australian shares closed modestly lower on Monday.

The big four banks - ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac - are down in a range of 1.7 percent to 2.0 percent. Shares of National Australia Bank are trading ex-dividend.

Oil stocks are lower after crude oil prices declined overnight. Oil Search is losing almost 2 percent, while Woodside Petroleum and Santos are down more than 1 percent each.

Among the major miners, BHP Group is declining almost 2 percent and Rio Tinto is down more than 1 percent, while Fortescue Metals is adding 0.7 percent.

Bucking the trend, gold miners are advancing after gold prices rose to a one-month high overnight. Evolution Mining is gaining more than 8 percent and Newcrest Mining is advancing more than 2 percent.

Ruralco Holdings reported a nearly 4 percent decline in profit for the first half of the year on an increase in one-off costs, including costs related to the company's proposed acquisition by Canadian fertilizer maker Nutrien. The agribusiness company's shares are lower by almost 1 percent.

Kathmandu Holdings said it has appointed Chris Kinraid as its chief financial officer with immediate effect and splitting the previously combined roles of CFO and chief operating officer. However, the outdoor clothing and equipment retailer's shares are losing almost 2 percent.

On the economic front, Australia will see April results for the surveys of business confidence and conditions from NAB today.

In the currency market, the Australian dollar is lower against the U.S dollar on Tuesday. The local currency was quoted at $0.6950, down from $0.6975 on Monday.

On Wall Street, stocks closed sharply lower on Monday after China announced plans to raise tariffs on $60 billion worth of U.S. goods, shrugging off a warning from U.S. President Donald Trump. The move by China comes in retaliation for Trump's recent decision to raise tariffs on about $200 billion worth of Chinese goods to 25 percent from 10 percent.

The Dow plunged 617.38 points or 2.4 percent to 25,324.99, the Nasdaq plummeted 269.92 points or 3.4 percent to 7,647.02 and the S&P 500 dove 69.53 points or 2.4 percent to 2,811.87.

The major European markets also moved to the downside on Monday. While the U.K.'s FTSE 100 Index fell by 0.6 percent, the French CAC 40 Index and the German DAX Index tumbled by 1.2 percent and 1.5 percent, respectively.

Crude oil futures pared early gains and settled notably lower on Monday as worries about global growth following an escalation in U.S.-China trade tensions raised concerns about energy demand. WTI crude for June delivery fell $0.62 or 1 percent to $61.04 a barrel on the New York Mercantile Exchange.

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