After two days of surprising outperformance, the Australian share market has retreated, losing around 1% in value.
The stage was set after a familiar theme played out overnight. Solid US economic data re-stoked Fed rate hike concerns, which in turn triggered declines in US markets.
This weak sentiment set the tone for the local session. Disappointing domestic construction data added to the general woe and saw the selling hasten.
The pain was shared across the board. The materials sector was sold hard, despite last night’s sharp rally in iron ore price. Financials and consumer staples were also punished, as investors resisted the yield pursuit. Given the impressive rise of the ASX200 over the last couple of sessions, it’s likely profit taking has also played a part in today’s falls.For further comment from CMC Markets please call 02 8221 2124.