Australian sharemarket sheds $60bn as jump in bond yields has investors scrambling | The Business

The Australian share market posted its biggest loss since early March and the start of the US-Iran war, losing two per cent or $60 billion in value. The market has set a new 50-day low. Every sector lost ground, with energy, consumer non-cyclicals, and real estate sectors weighing heavily on the index. Jamie Hannah, deputy head of investments and capital markets at Van Eck, told The Business investors are jittery as bond yields continue to jump: "So essentially the rising yields in the US have started to impact the share market and Australia generally takes its lead from the US. "We've amplified the news here in Australia as we start tying this back to our own domestic economic issues and as a result we've fallen a lot further than the US." He says it's not necessarily that bond yields are hovering near 20-year highs, but rather the speed with which they reached those levels. "Now, rates have already been this high in the past, like 20 years ago, but it's more the rapid move in them which is causing these issues, as everything in the economy needs to adjust in this short period of time." Mr Hannah says investors need to prepare for continued volatility in the short term. But long term, he's positive about the Australian market outlook. #ABCBusiness Subscribe: http://ab.co/1svxLVE Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia