Mining and bank stocks drag ASX 200 to lowest point in 11 weeks

Threats of rising interest rates and oil prices have dragged the ASX 200 to an 11-week low in a “horror show” for Aussie shareholders.

The benchmark ASX 200 slumped 77.40 points, or 0.88 per cent, to 8672.50, while the benchmark All Ordinaries fell 74.60 points, or 0.84 per cent, to 8849.30.

The Australian dollar slipped against the greenback to buy 71.19 US cents.

On an overall weak day of trading, six of the 11 sectors finished in the red, led by falls across the heavyweight materials and financials sector.

Mining giant BHP shares dropped 2.21 per cent to $59.25, Rio Tinto fell 2.20 per cent to $164.50 and Fortescue gave back 1.88 per cent to $16.22.

All four major banks also dragged, led by Commonwealth Bank which slumped 1.59 per cent to $152.50, National Australia Bank fell 1.29 per cent to $38.22, Westpac slipped 0.52 per cent to $34.35 and ANZ dragged 1.12 per cent to $37.12.

Offsetting the falls across the market was a jump in healthcare stocks, with vaccines giant CSL up 1.57 per cent to $174.26, ResMed soared 2.85 per cent to $31.37 and Sonic Healthcare climbed 1.57 per cent to $19.35.

Hitting the Australian market on Tuesday, was a rise in the Brent Crude futures climbed past $US107 ($A150.26) a barrel, as the conflict over the critical Strait of Hormuz and the Red Sea continued.

IG senior market analyst Tony Sycamore said the ASX 200 “horror show” extended on Tuesday, as the local index hit an 11-week low, due to rate hike fears.

“This follows last week’s smash-up derby, which saw the ASX200 lose 264 points and at the halfway mark the local bourse is down 4.50 per cent for the month,” he said.

“Adding to the malaise, the rate-sensitive ASX 200 is being pounded by higher interest rates after the US 10-year yield pushed above 5.02 per cent in today’s Asian session, its highest level since 2007.”

“That of course comes ahead of expected rate hikes from the Federal Reserve and the Bank of Japan later this week and together with last week’s ECB move, those decisions likely mark the start of a broader tightening cycle that could see at least eight G10 central banks lift rates by year-end.”

In company news, Nickel Industries shares fell 1.26 per cent to $0.78 after it warned shareholders unexpected dry conditions in Central Sulawesi, Indonesia, has hit its water supply which will lower output by 30 per cent.

New Hope Coal shares rallied 3.03 per cent to $6.47 after announcing an 11.8 per cent increase in sales, although net profits after tax came in at $161m in 2026 down from $439.4m the year prior.