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Worries about higher bond yields and energy costs are weighing heavily on the Australian market. (Dan Himbrechts\/AAP PHOTOS)<\/p>\n Worries about higher bond yields and energy costs are weighing heavily on the Australian market. (Dan Himbrechts\/AAP PHOTOS)<\/p>\n
Australia’s share market has wiped the previous session’s gains with interest after US bond yields surged, as global borrowing costs and high oil prices continue to sap investor confidence.<\/p>\n
The S&P\/ASX200 dropped 132.4 points by midday, down 1.51 per cent, to 8,656.6, as the broader All Ordinaries tumbled 132.6 points, or 1.48 per cent, to 8,836.6.<\/p>\n
The slump came after end-of-month selling and surging US bond yields weighed on Wall Street overnight, overshadowing what should have been a welcomed US inflation report, Moomoo chief market strategist Tapas Strickland said.<\/p>\n
“For Australian investors, the key test is whether local corporate earnings can weather higher global bond yields and elevated energy costs,” \u00a0he said.<\/p>\n
“Defensive positioning and balance sheet discipline will likely dictate performance as we enter the final quarter of the year.”<\/p>\n
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\n All 11 sectors on the ASX along with the Australian dollar are trading lower after a weak US lead. (Paul Braven\/AAP PHOTOS)<\/p>\n
The heavyweight financials sector shrank by 1.6 per cent into a sea of red, as CommBank slipped 0.6 per cent to $150.05 and its remaining big four competitors lost 1.7 per cent or more in early trade.<\/p>\n
Energy stocks were hit hardest, down 2.5 per cent despite a rebound in oil prices after Wednesday’s sell-off.<\/p>\n
The Brent crude benchmark was trading near $US98 a barrel after a partial recovery in Saudi oil exports, however the central conflict between the US and Iran shows little sign of easing.<\/p>\n
The raw materials segment dived almost one per cent in a broad-based sell-off, with BHP, Rio Tinto and Fortescue all bleeding lower after China’s widely anticipated economic stimulus policy turned out narrower than hoped, taking iron ore futures to almost two-year lows of $92.80 a tonne.<\/p>\n
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\n Gold is often seen as a safe-haven asset, with the precious metal maintaining its price. (Dan Himbrechts\/AAP PHOTOS)<\/p>\n
Gold producers also sold off, despite the underlying commodity holding relatively steady near $US4,161 ($A5,991) an ounce.<\/p>\n
Health care, consumer staples and real estate were some of the worst performing sectors, each down 1.9 per cent or more, while consumer discretionaries dropped by almost one per cent.<\/p>\n
In company news, refinery operator Ampol has announced it will buy electric vehicle charging company Evie Networks for $225 million.<\/p>\n
Lynas Rare Earths is set to acquire Brazilian explorer Meteoric, which reportedly owns the largest rare earths resource outside of China, for $968 million.<\/p>\n
The federal and Tasmanian governments have announced a $200 million bailout for Rio Tinto’s Bell Bay aluminium smelter in northern Tasmania.<\/p>\n
The Australian dollar is buying 69.44 US cents, down from 69.71 US cents on Wednesday at 5pm.<\/p>\n