Australian Shares Plummet from Four-Month High Amid US Bond Yields and Oil Volatility
Australian shares have dropped from their four-month high as concerns over rising US bond yields and oil volatility overshadowed a softening local interest rate outlook.
The S&P/ASX200 fell 74.1 points, or 0.82 per cent, to 8,964.5 on Thursday, while the broader All Ordinaries dropped 77 points, or 0.84 per cent, to 9,122.7.
Investor confidence waned as fresh US-Iran strikes sent oil prices higher, and a Federal Reserve call to hold US interest rates steady raised questions about chair Kevin Warsh's commitment to price stability. Thirty-year Treasury yields soared to a 20-year high of 5.3 per cent.
Mining stocks weighed heavily on the market, while consumer discretionary shares also fell sharply due to global inflation worries that dragged down gold stocks and clouded the retail outlook.