AUSTRALIAN SHARES FALL AS GLOBAL MARKET SELLOFF WEIGHS ON EQUITIES

Australian shares opened lower on Tuesday after global markets sold off heavily late last week amid concerns over valuations and elevated inflation. The benchmark S&P/ASX 200 fell 1.5% to 8,500 points in early trading. Australian markets had been closed on Monday due to a public holiday, leaving investors to absorb several sessions of global movement at once. Wall Street recorded a partial rebound on Monday following the earlier selloff, driven in part by weakness in technology stocks in South Korea and the United States.

Rising oil prices added further pressure on equities after renewed conflict in the Middle East reduced expectations that the Strait of Hormuz would reopen in the near term. The Australian dollar was trading at approximately US70.4 cents, close to its lowest level in two months. Chris Strazzeri, dealing manager at trading platform Moomoo, described Monday's lead from Wall Street as constructive rather than convincing. Strazzeri noted that the technology sector's partial recovery offered some support to markets.

Strazzeri said geopolitical risks and a desire among investors for greater clarity continued to weigh on sentiment. He characterised the session as one of cautious optimism rather than a broad-based rally. The combination of inflation concerns, Middle East tensions, and currency weakness represents a range of pressures bearing on Australian markets simultaneously. No confirmed policy responses or institutional interventions have been announced in connection with the market movements.