At 11:30am, the S&P/ASX 200 is 0.86 per cent lower at 7,781.00, as investors sold off interest rate-sensitive sectors such as property, tech, and banking stocks due to the postponement of anticipated US interest rate cuts until November.
The real estate sector notably plummeted by 3.3%, reflecting concerns over prolonged higher rates impacting commercial property valuations and diminishing investment yields.
This decline followed overnight selling of bonds and stocks triggered by US inflation data surpassing expectations, with prices rising 3.8% year-on-year in March, significantly exceeding the Federal Reserve’s 2% target.
The SPI futures are pointing to a fall of 67 points.
Best and worst performers
The best-performing sector is Energy, up 0.51 per cent. The worst-performing sector is REITs, down 2.44 per cent.
The best-performing large cap is Computershare (ASX:CPU), trading 2.97 per cent higher at $27.77. It is followed by shares in ResMed (ASX:RMD) and Northern Star Resources (ASX:NST).
The worst-performing large cap is Technology One (ASX:TNE), trading 4.93 per cent lower at $15.82. It is followed by shares in Pro Medicus (ASX:PME) and Cleanaway Waste Management (ASX:CWY).
Commodities and the dollar
Gold is trading at US$2357.10 an ounce.
Iron ore futures are pointing to a 0.12 per cent rise.
One Australian dollar is buying 65.11 US cents.