Australian Shares Down 1%: Materials, Energy Hammered as Bond Yields Spike

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Australian Shares Down 1%: Materials, Energy Hammered as Bond Yields Spike
Credit: © Reuters.

By Oliver Gray 

Investing.com -The S&P/ASX 200 lost 67.70 points or 0.95% to 7,081.70 in Tuesday’s mid-morning deals, partially retracing gains of 1.2% in the previous session amid choppy market conditions as U.S. equities declined overnight, while crude oil prices dropped and bond yields spiked amid heightened inflation worries ahead of an upcoming Federal Reserve meeting on Thursday, while the RBA meeting minutes is set to be released later in the session.

ASX 200 Futures were pointing  0.18% higher.

Among stocks, Materials dropped 3.5% collectively with Rio Tinto Ltd (ASX: RIO ) down 4.48%, BHP Billiton Ltd (ASX: BHP ) losing 3.7%, Fortescue Metals Group Ltd (ASX: FMG ) down 5.52%, Champion Iron Ltd (ASX: CIA ) dropping 9.2%, Pilbara Minerals Ltd (ASX: PLS ) down 3.96%, Lake Resources NL (ASX: LKE ) down 3.59%, Avz Minerals Ltd (ASX: AVZ ) falling 2.91%, Lynas Rare Earths Ltd (ASX: LYC ) dropping 4.88%, Piedmont Lithium Ltd (ASX: PLL ) shedding 10.88%.

Energy also dropped about 3%, with Woodside Petroleum Ltd (ASX: WPL ) down 2.94%, Santos Ltd (ASX: STO ) losing 3.71%, Beach Energy Ltd (ASX: BPT ) down 4.55% and Viva Energy Group Ltd (ASX: VEA ) down 1.28%.

Financials were up 1.14% amid spiking bond yields. Macquarie Group Ltd (ASX: MQG ) added 0.93%, Australia and New Zealand Banking Group Ltd (ASX: ANZ ) gained 1.54%, National Australia Bank Ltd (ASX: NAB ) lifted 1.45%, Westpac Banking Corp (ASX: WBC ) gained 1.31% and Commonwealth Bank Of Australia (ASX: CBA ) increased 0.98%.

On the bond markets, Australia 10-Year rates were at fresh 39-month highs of 2.516%, while United States 10-Year yields were at 32-month highs of 2.131%.

In New Zealand, the NZX 50 added 0.17% to 11,827.

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