By Oliver Gray
Investing.com - The S&P/ASX 200 lost 8.90 points or 1.08% to 7196.70 on Wednesday, extending losses of 1.5% in the previous session and closing at 4-week lows as risk sentiment soured amid rising long term bond yields ahead of an expected Federal Reserve taper later this year, with investors moving away from growth oriented stocks, while mining heavyweights fell further on fears over production curbs due to a power crunch in China.
In coronavirus news, New South Wales recorded 863 new locally acquired cases, while Victoria tallied a record 950 cases. Meantime, the ACT added 22 new cases as infections continue to grow, while Queensland added 1 locally acquired case after a fresh cluster of 4 infections were reported yesterday.
Among stocks, major mining companies extended yesterday’s losses, with BHP Billiton Ltd (ASX:BHP) down 1.76%, Rio Tinto Ltd (ASX:RIO) falling 0.62% and Fortescue Metals Group Ltd (ASX:FMG) losing 0.54%. Technology stocks also dragged, with Afterpay Touch Group Ltd (ASX:APT) fell 4.72%, Wisetech Global Ltd (ASX:WTC) lost 0.8% and Xero Ltd (ASX:XRO) fell 1.32%.
On the bond markets, Australia 10-Year bond yields were at 13-week highs of 1.493%, while United States 10-Year rates were at similar 13-week highs of 1.525%
In New Zealand, the NZX 50 was down 69.44 points or 0.53% to 13119.79.