ASX200 ends lower for third session as US futures rise; Pendal rallies on earnings beat

ASX rebounds from a three-month low after falling for a third session. Pendal climbs on earnings beat, retails sales lift, Link $3.5bn takeover vote set and dollar falls below 70c.

Tech stocks are expected to remain under pressure after the Nasdaq tumbled another 4 per cent overnight. Picture: Christian Gilles / NCA NewsWire

Welcome to the Trading Day blog for Tuesday, May 10. The Australian share market rebounds from a three-month low as US futures rise. It comes as retail sales volumes climb and Pendal rallies on earnings beat.

The S&P/ASX 200 index finished 1 per cent or 69.5 points lower to 7051.2, with just materials and energy sectors the sole underperformers.

The FTSE All-World barometer of global stocks dropped 3 per cent, its sharpest fall since June 2020, as investors fretted about the twin concerns of rising interest rates and an economic slowdown in China amid climbing Covid-19 cases.

On Wall Street, The Dow Jones Industrial Average dropped another 654 points, or 2.1 per cent, to 32245.70,  its lowest level since November 2020. The S&P 500 sank 3.2 per cent and the tech-heavy Nasdaq dived 4.3 per cent or 531 points. US 10-year bond yields also hit 3.2 per cent, the highest in three and half years before retreating again.

In Europe, all major benchmarks finished down more than 2 per cent.

Among commodities, fears of slowing Chinese demand, the world's top energy importer, hit the oil price. The Brent crude price fell  5.7 per cent to US$105.94 a barrel and US Nymex crude plunged 6.1 per cent to US$103.09 a barrel.

Iron ore was also lower, dropping 4.7 per cent to $US131.99 a tonne overnight.