SYDNEY — Australian shares recovered much of their early-session slide on Tuesday afternoon, though the benchmark index remained slightly lower as rising oil prices, a stronger U.S. dollar and a broad technology sell-off weighed on sentiment.

The S&P/ASX 200 was down 13.1 points, or 0.15%, at 8,770.1 as of 2:13 p.m. Sydney time, well above its midday level. By lunchtime, the index had fallen 41.7 points, or 0.47%, to 8,741.7, while the broader All Ordinaries had dropped 46.7 points, or 0.53%, to 8,890.3.

The afternoon rebound trimmed roughly two-thirds of the index's midday losses, but the market was still handing back part of Monday's rally. The ASX 200 had closed Monday at 8,783.2, up 66.6 points, or 0.76%.

Oil and the dollar set the tone

The pullback followed a mixed overnight session on global markets, with higher oil prices and continuing uncertainty over the outlook for artificial intelligence weighing on risk appetite, Westpac economist Neha Sharma said.

"Energy markets remained the key focus," Sharma said, pointing to doubts over U.S. President Donald Trump's proposed Russia-Ukraine energy ceasefire and concerns about fuel availability that reinforced expectations of prolonged supply disruptions. She added that the U.S. dollar strengthened alongside oil, while the Australian dollar and most major currencies weakened against the greenback.

Brent crude was trading at $105.70 a barrel after climbing above $107 overnight to its highest level of October. The spike came as U.S. lawmakers from both major parties criticized........

© International Business Times