SYDNEY, AAP – Technology and energy shares were among the least popular on a lower Australian market, which followed US markets rattled by rising bond yields.
The ASX was down 0.67 per cent and all share categories were lower as rising bond yields in Australia and the US showed investors expecting higher rates soon.
The Australian government 10-year bond yield was 3.07 per cent one week after the Reserve Bank dropped its patient language on raising rates.
Technology, energy and utilities shares were each down one per cent at 1200 AEST on Tuesday.
Meanwhile the oil price was complicated by coronavirus lockdowns in China which could dampen demand for fuel, and a warning of more sanctions on Russia.
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OPEC overnight warned European Union sanctions on the major energy supplier for its invasion of Ukraine could restrict oil supply.
Brent Crude was higher to $US99.72 per barrel.
Australian businesses have overcome the global economic pressures of the war in Ukraine after business confidence rose in March.
The National Australia Bank monthly business survey’s confidence index rose three points in March.
On the market, the benchmark S&P/ASX200 index was down 49.9 points, or 0.67 per cent, to 7435.3.
The index was about 200 points from its record high of August.
The All Ordinaries index was lower by 55.5 points, or 0.71 per cent, to 7717.7.
The major categories of materials and financials were each down by about half a per cent.
Fund manager Perptual has had its $2.4 billion offer for all the shares in rival Pendal dismissed.
Pendal said the $6.23 per share offer undervalued the business and was not in investors’ best interest.
Pendal was down almost one per cent to $5.25.
Perpetual was unchanged at $32.28.
Ampol’s proposed takeover of Kiwi fuel provider Z Energy has been cleared by the New Zealand Overseas Investment Office.
Ampol is selling its Gull fuels business in the same country to help fund the purchase.
The New Zealand High Court must still approve the Z Energy takeover.
Ampol was down less than one per cent to $31.40.
Z Energy was up by less than one per cent to $3.45.
Markets software vendor Iress will no longer part with its UK mortgages business.
Boss Andrew Walsh said opportunities were explored but retaining the business was best for investors, clients and staff.
The company will continue investing in the UK mortgages business.
Iress was up one per cent to $11.77.
The major banks were all lower. ANZ fared worst and dropped one per cent to $27.32.
The big miners were mixed. BHP and Fortescue each lost less than one per cent. Rio Tinto was up almost half a per cent to $117.99.
The Australian dollar was buying 74.12 US cents at 1200 AEST, lower from 74.38 US cents at Monday’s close.