The local share market closed marginally lower, pressured again by the rising US bond yields that are weighing on equities across the world.
The benchmark S&P/ASX200 index on Thursday finished down 5.5 points, or 0.08 per cent, at 7024.8, while the broader All Ordinaries dropped 7.3 points, or 0.1 per cent, to 7222.5.
In the US, yields for 10-year Treasury bonds climbed above 4.6 per cent, their highest level since 2007, following the Federal Reserve taking a more hawkish stance last week.
"The rise in Treasury yields reflects the outlook for an extended period of high interest rates, and this outlook is not sitting too well in terms of risk appetite on financial markets right now," said Tim Waterer, chief market analyst at KCM Trade.
He said the heightened yields pose something of a "psychological challenge" for traders, serving as a constant reminder that elevated interest rates are not going to go away anytime soon.
The higher yields on US Treasuries - often considered the world's safest asset - are making more risky assets such as shares less attractive, driving prices lower.
Domestically, markets were also digesting weaker-than-expected retail sales data for August, as well as a sharp drop in job vacancies.
AMP chief economist Shane Oliver said the readouts confirmed weakness in consumer spending and a still tight but cooling labour market, boosting the case for the Reserve Bank to leave rates on hold next week.
The ASX's 11 sectors finished mixed, with energy by far the biggest mover, rising 3.0 per cent as Brent crude prices hit a 10-month high of $US97 a barrel amid a big US inventory draw and OPEC+ production cuts.
Whitehaven Coal rose 6.1 per cent to a one-month high of $7.35, Santos added 3.8 per cent to a six-week high of $7.95, and Woodside climbed 2.9 per cent to $36.69.
The iron ore giants were also up, with BHP adding 0.6 per cent to $43.73, Fortescue growing 1.4 per cent to $20.66, and Rio Tinto climbing 1.2 per cent to $112.40.
Goldminers were under pressure as the price of the yellow metal fell to a six-month low of $US1876, pressured by rising yields.
Newcrest hit a six-month low as well, falling 5.0 per cent to $24.44, while Evolution and Northern Star both dropped a little over two per cent.
The Big Four banks were mixed, with CBA and NAB both falling 0.6 per cent to $99.95 and $28.88 respectively, while Westpac dipped 0.3 per cent to $21.13. ANZ was the outlier, rising 1.1 per cent to $25.48.
Washington H Soul Pattinson dropped 6.0 per cent to a one-month low of $31.52 as the diversified investment house announced its full-year results.
Managing director and CEO Todd Barlow told Ausbiz TV he couldn't fathom the market's reaction, given what he saw as a strong set of numbers, including a 12.3 per cent return on its investment portfolio.
"I can't explain markets in the short term, which is probably why it's good that I'm a long-term investor," he joked, adding he wasn't sure what else the company could do to support its share price.
Premier Investments dropped 0.5 per cent to $24.58 as the ownerr of Peter Alexander, Smiggle and Just Jeans announced sales were up 9.7 per cent to $1.6 billion for the 52 weeks to July 29, but had slowed slightly for the first six weeks of 2023/24.
The Australian dollar was buying 63.71 US cents, from 73.82 US cents at Wednesday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Thursday 5.5 points lower at 7024.8, a drop of 0.08 per cent.
* The All Ordinaries fell 7.3 points, or 0.1 per cent, to 7222.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.72 US cents, from 63.82 US cents at Wednesday's ASX close
* 95.12 Japanese yen, from 95.11 Japanese yen
* 60.64 Euro cents, from 60.37 Euro cents
* 52.48 British pence, from 52.52 British pence
* 107.27 NZ cents, from 107.46 NZ cents