Trading Day: ASX dives 1.1%, BNPL sector pummelled

Australian shares dived as a spike in US inflation expectations and consequent sharp drops in the S&P 500 and Nasdaq 100 sparked a pullback in global markets.

Australian stocks on Monday surged to a record closing high and more rises are predicted. Picture: AAP

Welcome to the Trading Day blog for Tuesday, May 11.  Stocks retreat, erasing Monday's big rise, to be firmly lower at noon after US inflation jitters sparked US falls. Miners lost ground after big gains made when the iron ore spot price soared.

Iron ore had jumped 7.9 per cent while copper also hit an historic peak on demand optimism as economies reopen. Locally, all eyes will be on the federal budget tonight.