The Australia share market retreated to a six-month low on Tuesday, as global markets felt the pressure from surging bond yields – despite, in Australia’s case, the Reserve Bank leaving the official cash rate on hold at 4.1%, for a fifth straight month.
The benchmark S&P/ASX200 (INDEXASX: XJO) index finished down 89.8 points, or 1.3%, to 6,943.4, its lowest level since March. The market gauge is now in the red for 2023, to the tune of 1.3%.
The broader All Ordinaries (INDEXASX: XAO) index dropped 94.5 points, or 1.3%, to 7,141.
Ten of the 11 sectors of the ASX lost ground, with energy the worst performer, dropping 3.7% following the fall in oil prices.
Woodside Energy Group Ltd (ASX: WDS) fell $1.35, or 3.7%, to a nearly three-month low of $34.90, while Santos Ltd (ASX: STO) dropped 34 cents, or 4.3%, to $7.53.
Santos Ltd (ASX: STO) share price
Beach Energy Ltd (ASX: BPT) was down 9 cents, or 5.5%, to $1.54, and Brazilian-based producer Karoon Energy Ltd (ASX: KAR) eased 10 cents, or 3.7%, to $2.60.
Among the Big Four banks, National Australia Bank Ltd. (ASX: NAB) closed 17 cents, or 0.6%, lower at $28.79; Westpac Banking Corp (ASX: WBC) was down 8 cents, or 0.4%, to $21.05; ANZ Group Holdings Ltd (ASX: ANZ) also lost 8 cents, in its case 0.3%, to $25.41; and Commonwealth Bank of Australia (ASX: CBA) eased 16 cents, or 0.2%, to $99.69.
The Healthcare sub-index added 0.2%, with US dollar-earners to the fore: CSL Limited (ASX: CSL) gained $2.35, or 1%, to $248.71; Resmed CDI (ASX: RMD) put on 11 cents, or 0.5%, to $23.04; and Fisher & Paykel Healthcare Corporatn Ltd (ASX: FPH) rose 7 cents, or 0.4%, to $19.96; but Cochlear Limited (ASX: COH) did not get the memo, sliding 84 cents, or 0.3%, to $253.91.
CSL Limited (ASX: CSL) share price
Red day for resources
Among the heavyweight miners, BHP Group Ltd (ASX: BHP) slid 76 cents, or 1.7%, to $43.84; Fortescue Metals Group Ltd (ASX: FMG) dropped 33 cents, or 1.6%, to $20.73; and Rio Tinto Ltd (ASX: RIO) retreated $2.04, or 1.8%, to $112.80.
In gold, Northern Star Resources Ltd (ASX: NST) fell 45 cents, or 4.3%, to $10.04; Newcrest Mining Ltd (ASX: NCM) gave back 79 cents, or 3.2%, to $23.71; Evolution Mining Ltd (ASX: EVN) retreated 16 cents, or 4.9%, to $3.12; Gold Road Resources Ltd (ASX: GOR) slipped 6.5 cents, or 4%, to $1.58; West African Resources Ltd (ASX: WAF) lost 5.5 cents, or 7.1%, to 72 cents; and Bellevue Gold Ltd (ASX: BGL) walked back 6 cents, or 4.3%, to $1.33.
In coal, Whitehaven Coal Ltd (ASX: WHC) lost 26 cents, or 3.6%, to $6.93; New Hope Corporation Ltd (ASX: NHC) was down 7 cents, or 1.1%, to $6.34; Coronado Global Resources Inc (ASX: CRN) surrendered 8.5 cents, or 4.6%, to $1.78; and Stanmore Resources Ltd (ASX: SMR) lost 9 cents, or 2.4%, to $3.66.
In lithium, producer Allkem Ltd (ASX: AKE) shed 56 cents, or 4.8%, to $11.15; fellow producer Pilbara Minerals Ltd (ASX: PLS) weakened 12 cents, or 2.9%, to $4.09; IGO Ltd (ASX: IGO), which mines nickel and lithium, was down 36 cents, or 2.8%, to $12.37; and Mineral Resources Ltd (ASX: MIN), which produces iron ore and lithium, dropped $3.38, or 5%, to $64.15. US-based lithium project developer Piedmont Lithium Inc (ASX: PLL) plunged 5.5 cents, or 8.4%, to 60 cents.
Copper heavyweight Sandfire Resources Ltd (ASX: SFR) lost 13 cents, or 2.1 per cent, to $6.10; while rare earths producer fell 24 cents, or 3.5 per cent, to $6.54.
Sandfire Resources Ltd (ASX: SFR)
US stocks balk at 16-year yield highs
In the US, stocks reacted poorly to bond yields hitting their highest levels since 2007, as concern mounts that higher interest rates could tip the economy into a recession.
The blue-chip Dow Jones Industrial Average (INDEXDJX: .DJI) lost 430.97 points, or 1.3%, for its worst day since March, ending the session at 33,002.38. which put it into the red for 2023.
The broader S&P 500 (INDEXSP: .INX) index walked back 58.94 points, or 1.4%, to 4,229.45, its lowest level since June, while the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) Index sank 248.31 points, or 1.9%, to 13,059.47.
The 10-year Treasury yield touched 4.804%, its highest level in 16 years, but actually ended the day down 22.5 basis points, at 4.579%. The 2-year yield eased 13 basis points, to 5.054%.
Gold shed US$1.82 to US$1,823.90 an ounce; the global benchmark Brent crude oil grade rose 21 cents, or 0.2%, to US$90.92 a barrel; and US West Texas Intermediate crude also notched a 21-cent gain, to US$89.44 a barrel.
The Australian dollar is buying 63.01 US cents this morning, down from 63.12 US cents at the ASX close on Tuesday.
