Why Australian equity markets are on track for losses? | AU Market Updates

Australian equity markets are on track to report losses for the week and the day. The fall in the benchmark index is broad-based, and each of the subsector indexes are tracking lower today. ASX 200 is down nearly 126 points at the close.

Rising risk-free rates across the board have forced the investors to sell stocks. Australian bond yields have climbed up significantly this week, driven by a global surge in sovereign bond yields. Investors are dumping risk-free assets as economic uncertainties are fading.

Over the week, investor sentiment has remained bullish on cyclical stocks, which are relatively more sensitive to economic activities. Industrials, energy, materials, consumer discretionary, financials are the sectors to keep a close watch.

The Reserve Bank of Australia would be looking at the matter of the rising Australian Dollar. Given the level of increase in bond yields, the bank may choose to raise the intensity of bond purchases to have a more significant impact on yields.

The yield on the Australian ten-year bond was around 1.84%. Commodity prices were largely higher today with gains in iron ore, copper, coal, oil, but gold and silver prices were tracking lower.

Silver Lake Resources was the highest gainer in the ASX 200 index, followed by Perseus Mining, Lynas Rare Earths, AMP Limited, and Westgold Resource. Most losses were seen in Orica Ltd, Service Stream, PointsBet Holdings, Afterpay, and Kogan.com.


The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK