The S&P/ASX 200 Index (ASX: XJO) is heading south on Wednesday.
At the time of writing, the benchmark index is down 1.38% to 8,941.9 points, with losses spread across most sectors.
There are 159 ASX 200 shares trading lower, compared with just 34 risers and 7 unchanged.
If the market closes around these levels, it would be the ASX 200's worst session since 28 May, when the index fell 1.43%.
So, what is weighing on the market today?
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What's behind today's fall?
The weak start followed another poor session in the US.
The S&P 500 Index (SP: .INX) fell 0.7%, the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 1%, and the Dow Jones Industrial Average (DJX: .DJI) lost 0.8%.
Oil prices and bond yields are both causing some headaches.
Brent crude surged 4.6% overnight to US$94.65 a barrel following another escalation in tensions between the US and Iran. It has since pushed above US$96 a barrel.
That is adding to inflation concerns at a time when investors are already pricing in a greater chance of further interest rate rises.
The US 10-year Treasury yield has climbed to around 4.79%. This is the highest level since October 2023, while Australian 10-year yields have moved back to levels last seen in 2011.
Mining shares are being hit hard
The resources sector is doing plenty of the damage, with copper and gold prices falling.
BHP Group Ltd (ASX: BHP) shares are down 2.93% to $64.88 after copper prices dropped overnight.
Gold miners are also having a difficult session, with Northern Star Resources Ltd (ASX: NST) shares down 4.81% to $22.55 and Evolution Mining Ltd (ASX: EVN) shares falling 4.29% to $14.28.
PLS Group Ltd (ASX: PLS) shares have also tumbled by 4.20% to $5.25.
In addition, a number of companies are trading ex-dividend today, with those moves expected to shave around 31 points off the index.
A few shares heading the other way
Energy shares are one of the few areas holding up as oil prices rise
Woodside Energy Group Ltd (ASX: WDS) shares are up 2.02% to $33.36, and Santos Ltd (ASX: STO) shares have gained 1.21% to $8.38.
Telstra Group Ltd (ASX: TLS) is another standout, rising 1.94% to $4.72.
GDP beats expectations
Investors also got a new read on the economy this morning.
Our GDP grew 0.4% in the June quarter and 2.1% over the year, ahead of expectations for growth of 0.3% and 1.8%.
Even though it wasn't a huge beat, it's another result that could keep the interest rate discussion alive.
