Half-time wrap:
Aussie shares hit a three-week low before paring their losses as financial markets factored in the risk of higher rates after yesterday's inflation disappointment.
The ASX 200 lost almost 130 points in early action. By the halfway mark, a partial recovery had trimmed the index's loss to 79 points or 1.02%.
Today's fall briefly extended the index's two-day decline to 185 points. Stocks tanked yesterday after a spike in annual headline inflation to a six-month high prompted some economists to forecast an August rate hike, and others to push back the start of the cutting cycle.
All 11 sectors declined this morning, led by rate-sensitive property stocks, utilities and industrials. Declines among real estate investment trusts were compounded by many trading ex-dividend.
Today's falls came as bond yields marched higher for a second day. The yield on 10-year Australian government bonds has jumped from 4.2% yesterday to 4.41% this morning as traders factored in the possibility of another rate hike as soon as August.
Personal trading: Well done to anyone making a quid this morning. Tough conditions. I scraped a couple of pips from A3D, but that was it. Hoped the carnage at the top end of the market might throw up some cheap entry opps lower down, but not really. The spec end of the market generally trails developments at the top end - slower to turn in either direction.
