The Australian sharemarket retraced early gains to close lower on Wednesday, tracking losses on Wall Street overnight as oil prices approached US$100 a barrel amid escalating violence in the Middle East and U.S. bond yields moved higher.
The S&P/ASX 200 Index fell 9.40 points, or 0.1%, to 8,911.4, its lowest close since 28 July, with seven of the 11 sectors finishing lower.
The Health Care sector led the declines, with CSL falling 2.1%, Fisher & Paykel Healthcare dipping 0.5%, Cochlear losing 3.1%, and Pro Medicus retreating 1.8%.
Consumer discretionary stocks also came under pressure. Wesfarmers fell 1.4%, Eagers Automotive shed 5%, Harvey Norman declined 2.6%, and Myer dropped 7.7%.
The Energy sector bucked the broader weakness as crude oil prices continued to rise. Santos gained 1.3%, Woodside Energy added 2.6%, and Ampol advanced 1.4%.
Among individual movers, Austal shares surged in afternoon trade after the shipbuilder confirmed a non-binding takeover offer from Wildcat Infrastructure for up to US$1.35 billion.
The proposal tops a previous US$1.2 billion offer from South Korea's Hanwha for Austal's U.S.-based division.
On the bond markets, 10-year rates rose 0.3% to 5.209%, while two-year rates fell 0.3% to 4.844%.
