Australian Shares Extend Declines

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Australian Shares Extend Declines
Credit: © Reuters.

By Oliver Gray

Investing.com - The S&P/ASX 200 lost 19.10 points or 0.26% to 7,280.70 during Tuesday’s session, extending losses of 0.3% in the previous session as investors remained cautious amid fears of persistent inflation, a slowing economic recovery and rising long term bond yields. However, losses were limited as local business confidence data came in above market expectations.

In coronavirus news, New South Wales added 360 cases as Premier Dominic Perrottet has announced further business support, while Victoria tallied 1466 fresh cases as the state hit its 60% double dose vaccination target.

Among stocks, technology names fell, as Afterpay Touch Group Ltd (ASX: APT ) fell 3.05%, while Appen Ltd (ASX: APX ) was down 3.64% and Wisetech Global Ltd (ASX: WTC ) lost 1.57%. Westpac Banking Corp (ASX: WBC ) also fell 1.64% after the bank said that profit for the second half will be cut by A$1.3 billion due to write-downs, provisions for refunds and litigation, and costs from selling off its life insurance business.

On the bond markets, Australia 10-Year yields were at 5-month highs of 1.731% while United States 10-Year rates held at 4-month highs of 1.614%.

Among data, NAB’s business confidence jumped to 13 points, coming in well above market estimates of -2. In a note to clients, the bank’s Australian Economics team wrote “Business confidence rebounded strongly in September to be well above its long-run average, after falling well into negative territory in prior months. The improvement was driven by large shifts in confidence in NSW and Victoria following the announcement of reopening road maps in these states as well as rising vaccination rates across the country.”

In New Zealand, the NZX 50 fell 23.11 points or 0.18% to 12996.26.

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