What happened
The S&P/ASX 200 Index lost 0.64% on Wednesday, closing at 8,727.9 points following weakness on Wall Street. The sell-off was led by the All Ordinaries Gold Index, down 1.93%, and the Financials Index, down 1.41%. Materials dropped 0.88% and Industrials fell 0.71%, while A-REITs and Communication Services gained 1.0% and 0.85% respectively.
Why it matters here
Financials and resources comprise the lion's share of the Australian market, so concurrent pullbacks in both heavyweights severely limit broader index gains. Local investors relying on franked bank dividends and resource cash flows face heightened short-term volatility as global bond yields stay elevated and commodity demand soft. Real estate trusts offered defensive support as Australian 10-year yields eased.
What to watch
US banking earnings results and domestic employment statistics due Thursday, which will influence bank valuations and general local market sentiment.
Source
fool.com.au