“Markets earlier in the week were probably buoyed by the Reserve Bank only doing 25 basis points, and wondered whether there would be widespread tilt - including from the Fed,” Stephen Miller, advisor to GSFM Funds management said.

“I don’t think that the Fed is going to step back from his hawkish rhetoric, so markets digested that and thought, well, you know what, maybe bond yields aren’t going to go down that far.”

Elsewhere, exports of goods and services in Australia rose by 2.6 per cent in August, with imports up 4.5 per cent to record highs.

“While most of the world is complaining about rising prices, Australian exporters are celebrating,” Commsec’s chief economist Craig James said.

“Demand for raw materials or commodities is strong, production is constrained (like most things) and prices are rising. As a result, Australia’s trade accounts are solidly in surplus. And we are actively trading with more countries.”

“While most of the world is complaining about rising prices, Australian exporters are celebrating,” Commsec’s chief economist Craig James said.

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As traders navigated another day of market volatility, the Reserve Bank released its financial stability review today, which assesses the current condition of the financial system and potential risks to financial stability.

“While banks are generally well capitalised and loan arrears remain low, financial asset prices have declined substantially and volatility in financial markets has increased,” the report read.

“Liquidity conditions have deteriorated in some financial markets, most notably in government bond markets.”

Stocks fell sharply on Wall Street on Thursday as the broader market continued pulling back from a surge earlier in the week.

The S&P 500 closed 1 per cent lower. The benchmark index is still on track for a 4.5 per cent gain this week following its best two-day rally since the spring of 2020.

The Dow Jones shed 1.2 per cent and the Nasdaq lost 0.7 per cent. The Australian dollar shed more than 1 per cent to fall below 65 US cents. It is fetching 64.09 US cents at 10.15am AEDT.

Tweet of the day:

Quote of the day: “We are already in a strong financial position to self-fund the Sal de Vida project however we saw an opportunity to further improve the financing structure for Sal de Vida and partner with IFC, an institution with decades of experience providing finance and sustainable business solutions in the mining space,” Allkem’s chief executive, Martin Perez de Solay, said.

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The mining group has announced a $US200 million investment from the International Finance Corporation (IFC) to support its development of the Sal de Vida Stage 1 project in Argentina, which is set to produce battery grade lithium carbonate.

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