Australia’s share market has slumped to 11-week lows as oil prices, interest rates and fading hopes of an artificial intelligence infrastructure boom pummel investor confidence.
The S&P/ASX200 dropped 77.4 points on Tuesday, down 0.88 per cent, to 8,672.5 , as the broader All Ordinaries lost 74.6 points, or 0.84 per cent, to 8,849.3.
“It’s been another horrendous day,” IG market analyst Tony Sycamore told AAP.
Mining stocks weighed heavily after calls for AI safety guardrails dented copper prices, along with hopes the technology’s massive infrastructure spend will reinvigorate global growth.
Financials also dragged as bets narrowed on a September Reserve Bank interest rate increase, while stubbornly high crude prices and subsequent inflation expectations propelled Australian 5-year and 10-year bond yields to levels not seen since 2011.
The Australian dollar is buying 71.22 US cents, down from 71.37 US cents on Monday at 5pm ahead of a widely-tipped US interest rate hike later in the week.
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