AU Morning Wrap: ASX Eases 0.2%, Liontown Falls After Citi Bid Comments

Technology stocks slid Tuesday, dinged by rising bond yields, as an ebbing of the recent turmoil in the banking sector shifted investors' attention back to the threat of further interest-rate increases by the Federal Reserve.

Many investors speculated earlier this month that the high-profile failures of SVB Financial and Signature Bank would test the Fed's resolve in its efforts to fight inflation. Now, easing anxiety about global banks is leading them to renew bets that interest rates could rise further and stay elevated.

Banks and tech stocks led losses. Materials was the only sector in the black.

Liontown fell 1.2 per cent following Citi's comments that the US commodities giant Albemarle bid needs a "bump".

Pilbara Minerals rallied 1.3 per cent after its board approved a capacity expansion at Pilgangoora.

The ASX fell 0.4 per cent after ASIC started a prove about the stock exchange operator’s obligations in the oversight of the CHESS replacement program.

Nitro Software softened 0.4 pe cent following the exit of its top two executives.

Tim Reed, a managing director of Potentia Capital, which has an 87 per cent interest in Nitro, will act as interim CEO and will join the board as a director.

Potentia is recommending Nitro shareholders accept its all cash takeover offer of the $2.2 per share. The offer expires on March 31, unless extended.

That's up from a previous forecast of between $300 million and $320 million and follows the sale of its asset care business to SRG Global for $80 million.

The proceeds from the sale will be used for capital management including market opportunities.