Australian share market, dollar hit new low for 2023
Both the local share market and currency have dropped in morning trade to their lowest levels since November as bond yields continue to soar.
The sell-off in the local shares has continued for a third straight day, with the benchmark index briefly making a new low for the year this morning as bond yields soar.
Just after 11am AEDT on Wednesday, the S&P/ASX200 fell to 6,893.5, its lowest intraday level since November 4 of last year.
It then quickly moved back above 6,895, a low set on March 20, and had managed to stay there - just.
At noon, the ASX200 was down 45.9 points, or 0.66 per cent, to 6,897.5. The broader All Ordinaries had fallen 51.2 points, or 0.72 per cent, to 7,089.8.
In the US overnight, job figures known as JOLTS showed an unexpected rise in job vacancies last month, supporting the Fed's narrative about interest rates remaining higher for longer.
"It provided a shock to the system with markets rocked across the board," NAB senior FX strategist Rodrigo Catril said.
The S&P500 tumbled 1.4 per cent and the Nasdaq dropped 1.9 per cent, while US Treasury yields surged to a 16-year high of 4.8 per cent.
This morning Australian 10-year bond yields were at 4.63 per cent, their highest level since August 2011.
Soaring bond yields are the main factor in the share market sell-off since last month's Fed meeting, since they make riskier equities look less attractive by comparison.
Every sector except utilities was in the red at midday, with tech down 1.3 per cent, telecommunications down 1.4 per cent and property dropping 1.1 per cent.
"There is nowhere for investors to hide in markets right now," eToro market analyst Josh Gilbert said.
"Not even traditional defensive names are offering a haven from the cold."
The Big Four banks were all in the red, with NAB down 1.4 per cent, CBA dropping 0.9 per cent, ANZ falling 1.1 per cent and Westpac down 0.6 per cent.
BHP had fallen 0.2 per cent and South32 was down 0.4 per cent, although Rio Tinto and Fortescue were slightly higher, up 0.4 and 0.2 per cent.
Overnight the Australian dollar fell below 63 US cents for the first time since November, dropping as low as 62.97 US cents.
At midday the Aussie was buying 63.03 US cents, from 63.12 US cents at Tuesday's ASX close.