Shares fall from multi-month high as confidence wanes
By Adrian Black
Australia's benchmark index has retreated as global inflation fears drag on confidence. -AAP Image
Australian shares have crumbled from four-month highs, as surging US bond yields and renewed oil volatility overshadowed a recently softening local interest rate outlook.
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The S&P/ASX200 dropped 74.1 points on Thursday, down 0.82 per cent, to 8,964.5, as the broader All Ordinaries fell 77 points, or 0.84 per cent, to 9,122.7.
Investor confidence waned as fresh US-Iran strikes sent oil higher, while a Federal Reserve call to hold US interest rates steady left bond investors questioning chair Kevin Warsh's commitment to price stability, as 30-year Treasury yield soared to a 20-year high of 5.3 per cent.
Mining stocks weighed heavily, while consumer discretionaries also fell sharply as global inflation worries dragged on gold stocks and clouded the retail outlook.
The Australian dollar is buying 69.51 US cents, from 69.53 US cents on Wednesday at 5pm.
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