The S&P/ASX200 fell 33 points on Wednesday, down 0.37 per cent, to 8,782.9, as the broader All Ordinaries lost 30 points, or 0.33 per cent, to 9,108.6.
It was the local bourse's third day of losses since US President Donald Trump threatened to slap tariffs on European allies if they failed to hand over Greenland to the United States.
"With trade-war rhetoric resurfacing and regional unease rising, markets remain highly sensitive to macro risks and prone to sharp, sentiment-driven pullbacks," Vantage senior market analyst Hebe Chen told AAP.
"Gold miners clearly stood out today, with Evolution Mining extending its strong run after delivering record-setting results that reinforced its earnings momentum and balance-sheet strength."
Record gold prices above $US4,870 ($A7,233) an ounce helped propel the raw materials sector 2.5 per cent higher, while financial stocks tumbled 1.6 per cent as Commonwealth Bank shares fell 2.2 per cent to $147.22, their lowest value since April 2025.
CBA's remaining big four competitors dropped between 1.2 per cent and 2.1 per cent.
Gold producer Emerald Resources outperformed the top-200, rocketing more than 12 per cent higher after the mineralisation estimate for its Memot project in Cambodia grew 27 per cent.
Critical minerals miners also performed well, with Liontown and PLS shares jumping more than 3.8 per cent each.
Lynas Rare Earths carved out a nearly seven per cent share price boost on soaring December quarter revenues, as surging commodity prices eclipsed a 30 per cent drop in production due to power outages.
The energy and utilities sectors rose more than 0.9 per cent each, as oil prices ticked higher during the session, while coal miners and Origin continued to lift a day after Origin extended the life of Australia's largest coal-fired power station.
Uranium stocks also caught a bid, but Paladin Energy was in a league of its own with a more than 13 per cent rally after upping quarterly production by a fifth and targeted full-year production at the upper end of guidance.
It was the best performer of the S&P/ASX200.
ASX-listed IT stocks sold off sharply, dropping 2.5 per cent after a grim lead from the Nasdaq overnight as US markets opened after a bank holiday, and after Netflix earnings show subscriber growth was slowing.
Accounting software Xero plummeted 5.2 per cent to $98.90, while WiseTech and Technology One fell more than two and three per cent respectively.
Consumer discretionaries were also hit hard, the sector down more than two per cent in a broad-based sell-off with significant drops for Wesfarmers (-2.7 per cent), JB Hi-Fi (-3.5 per cent) and Cettire (-10.7 per cent).
Real estate trusts were also a sea of red, down 1.6 per cent and tracking with similar losses in names like Goodman, Scentre and GPT Group.
The Australian dollar is buying 67.36 US cents, on par with Tuesday at 5pm.
ON THE ASX:
* The S&P/ASX200 fell 33 points, or 0.37 per cent, to 8,782.9
* The broader All Ordinaries dipped by 30 points, or 0.33 per cent, to 9,108.6
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 67.36 US cents, from 67.36 US cents at 5pm AEDT on Tuesday
* 106.57 Japanese yen, from 106.50 Japanese yen
* 57.50 euro cents, from 57.75 euro cents
* 50.13 British pence, from 50.11 British pence
* 115.41 NZ cents, from 115.49 NZ cents
