Highlights
- The ASX 200 closed considerably lower, capping off a genuinely difficult week for Australian shares
- Surging bond yields, driven by an underwhelming US Treasury buyback and rising oil prices, weighed heavily on equity markets
- Materials and information technology led the sector declines, while financials bucked the broader trend
The S&P/ASX 200 sank on Friday as a genuine bond market meltdown sparked a flight from mining and technology stocks, capping off a tough week where those following the market decided that local shares weren't a good risk-reward bet. Within the ASX Metal & Mining Stocks category, materials led the sector declines by a considerable margin, even as the broader ASX 200 navigated a genuinely difficult stretch of trading.
A Simple but Painful Relationship
It's a simple relationship: bond yields up, share prices down. But it wasn't like bond yields went up just a little overnight, they're edging toward levels that could create serious problems for the global economy. The Australian share market isn't immune from such moves in international capital markets, and Friday's fall capped a tough week where local shares faced sustained selling pressure.
The...