Thanks afternoon crew. Rough old session.
End-of-day summary:
The share market took its biggest tumble since April after stronger-than-expected economic growth dented the case for more interest rate cuts.
The ASX 200 skidded 162 points or 1.82% to a fourth straight loss and a four-week closing low.
Weak leads from US and European markets were compounded by a good-news-is-bad-news reaction to a mid-morning report showing the economy expanded at an annual rate of 1.8% last quarter, exceeding expectations for growth of 1.6%. Traders reasoned the report meant the RBA would see less need to lower official rates this month.
Stock prices were already under pressure after a bond sell-off rippled through overseas markets. The Stoxx 600 index in European dropped 1.5% and the S&P 500 in the US shed 0.69% during a "risk-off" session overnight as bond yields climbed.
"The decline is primarily driven by surging bond yields and the return of the bond vigilantes, fuelled by concerns over large fiscal deficits, central banks expected to cut rates into persistent inflation, and President Trump’s dovish reshaping of the FOMC," IG market analyst Tony Sycamore said.
The tech, financial, REIT and utilities sectors all lost at least 2.3% here as the sell-off widened to include all sectors. The gold sub-sector hit a new high in early action, but closed 0.19% lower as traders likely took profits where they could.
