Australian shares dip as global bond rout continues
Australian shares continued their downward journey as inflation concerns fueled by the Middle East energy crisis supported global bond sales and hurt investor confidence.
The S&P/ASX200 fell 71.6 points, or 0.83 percent, to 8,533 points at midday, while the All Ordinaries lost 71.6 points, or 0.81 percent, to 8,757.9 points.
Local stocks renewed their decline following Tuesday’s recovery after US President Donald Trump backed down on new threats of attacks against Iran.
But concerns about the conflict’s impact on global inflation hit Wall Street overnight, sending long-term Treasuries soaring to their highest levels since 2007.
“Frankly, we are less than convinced about the near-term prospects of a peace deal and suspect the motivation to cease fire stems from new drone attacks on the UAE and Saudi Arabia over the weekend,” said IG market analyst Tony Sycamore.
Despite the gloomy outlook in the Persian Gulf, oil prices have remained relatively stable since Monday, with Brent crude trading around US$110.60 per barrel.
ASX-listed energy stocks rose 0.4 per cent as Woodside and Santos advanced, while refinery operators and coal miners were mixed.
Uranium stocks continued to sell off, with Paladin Energy falling by more than a fifth in just one week.
Raw material producers were also under pressure; Mega miners BHP, Rio Tinto and Fortescue each gave up 1.9 per cent of their value by lunchtime as iron ore futures fell to two-week lows.
Gold miners retreated as the precious metal fell to US$4,481 per ounce ($A6,312); The All Ordinaries gold subindex has fallen more than 27 percent since the United States and Israel launched airstrikes on Iran on February 28.
Financials fell 0.7 per cent, with all four major banks falling into the red, with Westpac falling 1.1 per cent to $35.98.
Local IT stocks outperformed other sectors, rising 1.5 percent, but ultimately weakened after falling more than 40 percent since hitting record highs in September 2025.
Consumer-facing stocks showed some resistance to the broader sell-off, with staples gaining 0.4 per cent and cyclicals gaining 0.6 per cent, driven by recoveries in relevant segment giants Woolworths, Coles and Wesfarmers.
In company news, coal port operator Dalrymple Bay rose 0.8 per cent to $5.37 after raising its distribution expectation for fiscal 2026 by 7 per cent to 26.375 cents per share.
Webjet’s value fell by more than a tenth to a record low of 40 cents a share after Virgin told the travel company it planned to significantly reduce commissions and commercial deals from July 1.
The Australian dollar gained ground on Tuesday, buying 71.01 US cents from 71.34 US cents at 5pm, as the greenback gained on expectations that resurgent inflation would force the Federal Reserve to raise interest rates.
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