Market wrap: ASX falls on May 30 trading day

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The Australian stock market fell for a third straight session on Thursday, dragged down by a Wall Street sell-off, inflation fears and the collapse of BHP.

The benchmark ASX 200 fell 37.4 points, or 0.49 per cent, to 7,628.2, while the broader All Ordinaries index slipped 39.8 points, or 0.5 per cent, to 7,895, 9.

Technology stocks fared better, gaining 12.9 points, or 0.43%, to 3049.4.

The decline followed a negative session on Wall Street overnight, which saw the Dow Jones fall 411 points, or 1.06%, to 38,441 and the S&P 500 index fall 0.74% to 5,266.

The tech-heavy Nasdaq index fell 0.58% to 16,920.

Weak demand for U.S. bonds fueled the selling and, combined with growing fears that the U.S. Federal Reserve Bank could keep rates higher for a longer period to tame persistent inflation.

“The catalyst was a Treasury auction in the United States,” said Kyle Rodda, senior financial markets analyst at Capital.com.

“It ran into pretty weak demand and fueled fear in the market that has existed for almost two years, just about how the United States is going to finance its fairly significant deficit.

“The concern is that there may not be demand for US government bonds at current levels and so yields will have to rise to adequately compensate investors for the risks they wish to take.

“We’ve seen this really large drop in stock prices and it’s going to show up in the inflation data tomorrow night, which is quite significant because we’ve seen markets once again pricing in the prospect of rate cuts in the U.S. this year on this kind of of fear. of stubborn inflation”.

On the local stock exchange, six out of 11 industrial sectors closed in the red, led by materials with a sharp decline of 1.86%.

Diversified giant BHP fueled the fall with a 1.73% slump to $44.30 a share after announcing it had abandoned its $74 billion bid for rival Anglo American.

In a statement to the ASX, chief executive Mike Henry said Big Australian would maintain a “disciplined approach” to mergers and acquisitions.

A fall in iron ore prices to $115 a tonne also hit big miners, with Rio Tinto slumping 1.54% to $127.66 and Fortescue slumping more than 3% to $24.78 dollars.

Coal stocks also fell sharply, led by Whitehaven Coal down 2.12% to $7.85.

Coronado Global Resources slumped 3.59% to $1.08 and Stanmore Resources slumped 1.58% to $3.11, while small-cap Terracom Resources slumped 6.67% to 21 cents.

The energy sector fell 1.4% on fears that the surge in US yields could slow economic growth and curb oil demand, IG markets analyst Tony Sycamore said.

Woodside Energy fell 1.16% to $27.15, Santos slumped 1.83% to $7.49 and Beach Energy fell 0.59% to $1.68.

The big banks

In corporate news, sports company Catapult Group jumped nearly 10% to $1.70 after reporting a 20% rise in revenue to $100 million.

Beef producers had a mixed day following news that China will lift its ban on Australian beef imports.

The Australian Agricultural Company rose 2.84 per cent to $1.45 while Elders fell 0.61 per cent to close at $8.15 after rising in morning trading.

The biggest gainer on the ASX200 was Pro Medicus, which rose 3.6% to $120.07 per share, while the biggest laggard was Regis Resources, which fell 6.51% to 1 $.79.

The dollar lost 0.16% against the greenback, buying 66.6 cents at the close.

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