Shares tumble at the opening; Wall Street drops on geopolitical tensions; Judo Bank seeks $75 million hybrids, South32 flags 33 per cent drop in coal output; Oil prices and bond yields pare gains.
Australian shares dropped 0.8 per cent minutes after starting to trade on Monday, mirroring Wall Street on worries about further interest rate increases by the Federal Reserve, and fear of the Middle East conflict spreading. The benchmark S&P/ASX 200 lost 55.2 points, or 0.8 per cent, to 6845.5 by 10.20am AEDT, extending last week’s decline in response to the Israel-Hamas conflict and dwindling expectations for global growth.
The market digested remarks from Federal Reserve chairman Jerome Powell that left the door open to an additional rate increase, while other Fed officials have hinted that the tightening cycle could be at an end. Australian bond yields were up with the three-year at 4.2 per cent and the 10-year at 4.8 per cent. Stocks to watch Judo Bank is seeking to raise $75 million in perpetual subordinated notes.