Australian shares are tracking towards their seventh fall in eight sessions as investors demanded higher yields on bonds and bought gold on worries inflation will not extend its declines as expected.
The S&P/ASX 200 lost 1 per cent at the open to 7568.3 points at its lowest level since February 14, when it closed at 7547.7 points.
The interest rate sensitive technology and real estate sectors are the worst performers down 1.4 per cent and 1.3 per cent, respectively. The Australian dollar is down 0.1 per cent to buy $US64.2.
US jobless figures held steady overnight, adding to the week's positive reports on the world's biggest economy.
"Federal Reserve members continued to suggest there is no urgency to cut rates," National Australia Bank said. "The S&P 500 dropped for a fifth straight session, its longest losing run since October, but by a more modest 0.2 per cent on the day."
On fixed income markets, Australian and US government bond traders sold bonds and demanded higher yields to compensate them for the risk inflation remains higher for longer.
The yield on 10-year Australian government bonds added 9 basis points to 4.39 per cent. US 10-year treasury yields climbed 6 basis points to 4.64 per cent.
"Treasuries fell across the curve as Fed speakers supported the view that interest rates will be higher for longer," said ANZ Bank.
This morning Japan reported its inflation declined to 2.7 per cent year-on-year in March. Gold fetched $US2379 an ounce.
Stock movers
Karoon Energy lost 6.5 per cent to $2.53 in early trade after the Brazilian oil producer lowered its guidance for total production in financial 2024.
Shares in enterprise technology WiseTech and Xero are both down around 2 per cent as investors price in rising long-term risk free rates.
Sumber : asx
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