Markets remained nervous about contagion fear following the collapse of Silicon Valley Bank last week and the failure of New York's Signature Bank over the weekend even after the U.S. government took steps to shore up systemic confidence.
Markets are winding back expectations of interest rate rises in Australia and globally, particularly in the wake of the Silicon Valley Bank failure and concerns about any contagion effect.
At closing bell, the benchmark S&P/ASX200 index declined 99.96 points, or 1.41%, to 7,008.88. The broader All Ordinaries index dropped 109.92 points, or 1.5%, to 7,201.11.
The top performing stocks in the S&P/ASX 200 Index index were RAMELIUS RESOURCES and PERSEUS MINING, up 5.83% and 4.43% respectively. The bottom performing stocks in S&P/ASX200 index were LAKE RESOURCES N.L. and NOVONIX, down 8.47% and 8.46% respectively.
All 11 sectors were lower along with the S&P/ASX 200 Index. Information technology was worst performing sector, falling 3.44%, followed by energy (down 2.8%), materials (down 1.6%), consumer discretionary (down 1.41%), and financial (down 1.35%) sectors.
Shares of financials tumbled to five-month low, with the so-called 'Big Four' banks retreating between 1.7% and 2.7%.
Shares of materials and resources were also hit badly, on news that Chinese regulators might take steps to curb inflated iron ore prices. Sector majors BHP Group and Rio Tinto retreated 1.3% and 0.8%, respectively.
Energy stocks declined as oil prices slid about 2% overnight. Woodside Energy lost 3.2%, while Santos fell 3%.
Tech stocks struggled amid concerns borrowing to fund their growth could become harder and more expensive in the wake the US bank collapses. Computershare plunged 7.7%. Block Inc's ASX-listed shares and Xero dropped 3.7% and 2.5%, respectively.
ECONOMIC NEWS: Australia's consumer confidence remained unchanged near historical lows in March as rising interest rates continue to dampen households' near-term financial and economic expectations, survey data from Westpac showed on Tuesday. The consumer confidence index held steady at 78.5 in March. This marks the second consecutive month of extremely weak consumer sentiment. The 'economic outlook, next 12 months' sub-index declined 2.3% to 73.3, the weakest read since August 2020. By contrast, the 'economic outlook, next five years' sub-index posted a solid 5.6% growth to 95.3. The Westpac-Melbourne Institute Unemployment Expectations Index rose a further 2.9% in March. Despite the latest rise in interest rates and expectations of more to come, the Westpac Melbourne Institute House Price Expectations Index posted a robust 8.6% rise in March. The Interest Rate Expectations Index slid 3.6% to 180.3 in March.
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