ASX drops on tech; Pendal confirms Perpetual talks; BHP lifts iron ore forecast

ASX falls on broad losses led by tech and health. Pendal confirms Perpetual talks, coal miners lead energy rally, JB Hi-Fi sales boom and RBA says more rate hikes to come.

Investor sentiment is on a rollercoaster amid earnings and central bank updates. Picture: Gaye Gerard.

Welcome to the Trading Day blog for Tuesday, July 19. The Australian sharemarket closed lower on broad falls led by tech and health care, offsetting strong gains in energy. It comes as  Pendal halts amid talks of new buyout bid and the RBA tips inflation to peak this year.

The S&P/ASX 200 index slid 0.6 per cent, or by 37.5 points to 6649.60, while the All Ordinaries closed down 0.5 per cent to 6853.00.

On Wall Street, the Dow Jones Industrial Average fell 0.7 per cent while the S&P 500 lost 0.8 per cent and the technology-focused Nasdaq Composite Index was off 0.8 per cent after earlier gains were reversed as traders digested earnings updates from Goldman Sachs, which reported better than expected second quarter results, and Bank of America’s profit fell.

US 10-year bond yield rose to 2.97 per cent; two-year yield was higher at 3.17 per cent.

Commodity prices rebounded with global benchmark Brent crude up 5 per cent to $US106.27 per barrel and US Nymex up 5 per cent to $US102.60.

Copper, gold prices gained and the iron ore futures price rose 2.1 per cent to $US105.26 a tonne.

The Aussie dollar was slightly higher near US68.10c at the US close.