The S&P/ASX 200 Index (ASX: XJO) is heading lower again on Tuesday as investors start September on the back foot.
At the time of writing, the benchmark index is down 0.31% to 9,048 points after falling as low as 9,023 points earlier in the session. That briefly put the ASX 200 at its lowest level in around 2 weeks.
The weakness is fairly broad, with 105 of the top 200 shares falling, 84 rising, and 11 unchanged at the latest count.
So, what is behind today’s move?
Bond yields and rates are back in focus
Wall Street gave the ASX 200 a weak lead overnight, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 0.7%, the S&P 500 Index (SP: .INX) dropping 0.33%, and the Nasdaq Composite Index (NASDAQ: .IXIC) slipping 0.12%.
Higher oil prices and rising bond yields didn’t help.
Brent crude moved back above US$90 a barrel as fighting between the US and Iran picked up again, adding to concerns that higher energy prices could keep inflation elevated.
Bond yields are also moving higher. Australia’s 10-year government bond yield has climbed to around 5.19%, its highest level in 15 years, while the US 10-year Treasury yield is above 4.75%.
Interest rates are also back in the conversation again.
ANZ Group Holdings Ltd (ASX: ANZ) now expects the RBA to lift the cash rate by 25 basis points to 4.60% in November, citing persistent inflation and resilient household spending.
That follows a stronger-than-expected July inflation report, while the latest ANZ-Roy Morgan survey showed consumer confidence falling 2.6 points to 74.9 last week.
Ex-dividend moves are adding to the decline
Part of today’s fall also comes down to several large ASX 200 shares trading ex-dividend.
That means investors buying the shares today won’t receive the latest dividend, which can see the share price fall by roughly the value of the payout.
Wesfarmers Ltd (ASX: WES) shares are down 3.89% to $76.35, Woolworths Group Ltd (ASX: WOW) shares have dropped 2.70% to $39.22, while Fortescue Ltd (ASX: FMG) shares are 2.03% lower at $17.34.
Resources are limiting the damage
It isn’t all red across the market, with higher commodity prices helping several large resource shares.
Woodside Energy Group Ltd (ASX: WDS) shares are up 1.85% to $33.02, and Santos Ltd (ASX: STO) shares have gained 2.21% to $8.32 as oil prices rise.
BHP Group Ltd (ASX: BHP) shares are also 0.59% higher at $66.62, while Rio Tinto Ltd (ASX: RIO) shares have added 0.50% to $175.68.
That support has helped keep the ASX 200 above 9,000 points, after it briefly moved closer to that level earlier in the session.
The post The ASX 200 is falling again. What’s behind the sell-off? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.