ASX 200 down 2pc, BHP drops on ex-dividend; home loan values plunge

Investors bail amid interest rate fears, pushing the ASX 200 down 2 per cent. BHP and others lose ground after paying dividends. Consumer-focused stocks including Endeavour and A2 Milk find support.

Investors’ ongoing inflation and rate hike fears are set to send the Aussie sharemarket lower on Thursday. Picture NCA Newswire/ Gaye Gerard.

Welcome to the Trading Day blog for Thursday, September 1. The Australian share market closed 2 per cent lower, amid rising interest rate fears. 

The S&P/ASX 200 index closed 2 per cent lower at 6845.60 with all sectors down except consumer staples. Investors are concerned about the impact of further interest rate hikes.

Wall Street ended Wednesday weaker with the Dow Jones Industrial Average index retreating on earlier gains to close 0.88 per cent lower while the S&P 500 index fell 0.8 per cent and the Nasdaq index lost 0.6 per cent.

US 10-year bond yields are at 3.17 per cent, while two-year yields increased to 3.5 per cent.

Oil prices lost ground with global benchmark Brent crude falling 0.5 per cent to $US94.17 per barrel and the US Nymex down 2.7 per cent to $US89.16 per barrel.

Iron ore futures rose 0.3 per cent to $US104.76 per tonne.

The Aussie dollar was down 0.3 per cent to US68.18c on Thursday afternoon.