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?
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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.
