Australian Market Braces for Another Down Day as Oil Prices Soar

The Australian sharemarket is expected to fall again today as oil prices continue to surge and global bond yields rise. ASX 200 futures are pointing to a drop of 81 points, or 0.9%, at the open after yesterday's 1% decline.

Rising energy costs, higher interest rates, and escalating attacks on shipping have all contributed to the market's downturn. Brent crude briefly traded above US$108 a barrel yesterday, its highest level since May, and is now settling at US$107.63.

While energy stocks may see some support from oil prices, miners and other interest-rate-sensitive sectors are likely to feel the pinch of higher yields. The Australian dollar has also fallen below US72 cents, while copper and gold have retreated in response to rising bond yields.