ASX 200 falls in worst session since May amid rising oil and yields

The S&P/ASX 200 Index experienced a significant downturn on Wednesday, marking its worst session since late May. The benchmark index fell 1.38% to 8,941.9 points, with losses widespread across most sectors.

Market volatility was driven by poor performance in US markets, rising oil prices, and increasing bond yields. Brent crude surged above US$96 a barrel following heightened tensions between the US and Iran, fueling inflation concerns. Additionally, the US 10-year Treasury yield reached its highest level since October 2023, while Australian 10-year yields returned to levels not seen since 2011.

The resources sector faced heavy selling pressure due to falling copper and gold prices. Notable declines included BHP Group Ltd, which dropped 2.93%, and gold miners such as Northern Star Resources Ltd and Evolution Mining Ltd. Conversely, energy shares provided some support, with Woodside Energy Group Ltd and Santos Ltd seeing gains as oil prices rose.