Australian shares slipped lower on Friday as traders struck a cautious tone while Donald Trump’s erratic trade policy continues to cloud the economic outlook.

The S&P/ASX 200 dipped 0.3 per cent, or by 26.7 points, to 7942.3 in the first 30 minutes of trade, extending Thursday’s losses. The All Ordinaries slipped 0.1 per cent. Seven of 11 sectors were lower.

Technology stocks sold off the most, continuing Thursday’s sell-off. America’s punitive approach to tariffs continued to weigh on Friday, with risk-off sentiment taking hold ahead of sweeping reciprocal tariffs expected next week. WiseTech dropped 1.6 per cent and accounting software provider Xero shed 1.7 per cent.

Banks and consumer discretionary stocks were also sold. Commonwealth Bank shed 0.6 per cent. Consumer staples stocks – typically seen as a defensive sector owing to year-round consumer demand – rose the most, up 0.5 per cent.

Shares in Australian automobile-related stocks edged lower, tracking heavy losses in that sector on Wall Street after Trump imposed 25 per cent tariffs on all vehicles made outside his country. Bapcor dipped 0.4 per cent and ARB Corporation by 0.8 per cent.

Gold stocks were a bright spot after spot prices rallied to a record high of $US3059.55 an ounce. Ramelius Resources jumped 4.3 per cent, De Grey Mining 3.6 per cent and Northern Star Resources 3 per cent.

Stocks on the move

In corporate news, Corporate Travel Management dropped 3.5 per cent after chief executive of Australia and New Zealand Greg McCarthy stepped down following a seven-year stint.

Incitec Pivot slid 3.9 per cent after weather events delayed sales and output across its fertiliser and explosives businesses, though it expects to recoup losses in the second half.

Westpac shares were marginally lower, down 0.4 per cent, after chief executive Anthony Miller revealed the bank plans to spend $865 million on its “Unite” program in 2025 – a project key to enhancing the bank’s productivity, but which analysts warn carries significant execution risks.

And Bellevue Gold’s shares have continued a trading suspension as it mulls a potential downward adjustment to its production guidance. The company entered the halt earlier this week, announcing that it was conducting a review of gold output.