The ASX 200 clawed back from a triple-digit loss, closing 55.3 points lower, or 0.65%, as energy and base metals stocks surged, while tech stocks continued their decline. The market's rebound was driven by rising energy costs and bond yields, which weighed on banks and growth stocks, but were offset by strength in commodities. Greatland Resources surged 11.1% after lifting its Telfer gold resource by 150% to 8 million ounces, while AMP rallied 3.2% after announcing a $150 million on-market share buyback. Webjet gained 1.9% as its CEO stepped down, potentially reopening takeover discussions.
The market's performance was influenced by a variety of factors, including escalating tensions in the Middle East, which pushed oil prices higher and fueled inflation fears. The energy sector, including New Hope Corp. and Whitehaven Coal, led the gains, while Karoon Energy also rallied. Gold and base metals stocks, such as Newmont Corp. and South32, also performed well.
However, the tech sector continued to struggle, with rising bond yields crushing long-duration growth names. WiseTech Global and Catapult Sports led the losses, while Life360 and other tech stocks also declined. The financial sector weakened as higher interest rate expectations and slowing growth concerns weighed on the banks.
In commodities, gold and silver prices stabilized, while copper and iron ore prices edged higher. Lithium prices jumped in China trade, supporting Core Lithium, Elevra Lithium, and PLS Group. The ASX 200's performance was also influenced by US futures rallying during Asian trade, as the market followed the improvement in US futures.
Despite the market's rebound, the ASX 200's performance was still weak, with advancers lagging decliners by a significant margin. The market's volatility and the impact of rising energy costs and bond yields on the economy and corporate earnings will continue to be key factors in shaping the market's trajectory.
