Advertisement
Australia markets closed

  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     

  • ASX 200

    7,683.00
    -0.50 (-0.01%)
     

  • AUD/USD

    0.6533
    +0.0033 (+0.51%)
     

  • OIL

    83.00
    +0.19 (+0.23%)
     

  • GOLD

    2,339.70
    +1.30 (+0.06%)
     

  • Bitcoin AUD

    97,641.57
    -4,228.23 (-4.15%)
     

  • CMC Crypto 200

    1,355.42
    -27.15 (-1.96%)
     

  • AUD/EUR

    0.6091
    +0.0021 (+0.35%)
     

  • AUD/NZD

    1.0954
    +0.0012 (+0.11%)
     

  • NZX 50

    11,946.43
    +143.15 (+1.21%)
     

  • NASDAQ

    17,526.80
    +55.33 (+0.32%)
     

  • FTSE

    8,091.03
    +50.65 (+0.63%)
     

  • Dow Jones

    38,460.92
    -42.77 (-0.11%)
     

  • DAX

    17,961.43
    -127.27 (-0.70%)
     

  • Hang Seng

    17,284.54
    +83.27 (+0.48%)
     

  • NIKKEI 225

    37,628.48
    -831.60 (-2.16%)
     

Dismal day ahead expected for Australian stock market

Ingrid Fuary-Wagner

The Australian share market has opened two per cent lower in what is expected to be one of the worst days of trading in years.

After 15 minutes of trading on Monday, the benchmark S&P/ASX200 index was down 2.16 per cent at 5,102.00.

It is expected to translate into approximately $40 billion in losses for the day.

ASX
ASX

optionsXpress markets analyst Aaron Lynch said heavy falls on the Australian stock market were in response to the major sell-offs across world markets last Friday.

"The US markets were down over three per cent, European markets 2.5 per cent and Asian sessions as much as five per cent in the case of China,"Lynch told Yahoo7 Finance.

ADVERTISEMENT

"These selloff are based on concerns over Global growth and the strength of China after recent poor economic numbers and the re pricing of the Yuan."

Lynch said commodities were also a concern and were being pushed lower because of uncertain demand and excess supply.

Oil is currently down 2.15 per cent at $40.45 a barrel.

The dismal day of trading comes as Fortescue Metals announced a huge 88 per cent slide in its full year profit in the face of sliding iron ore prices.

The iron ore miner made a net profit of $A433.29 million for the year to June 30, down from $A3.78 billion a year ago.

The bad news follows on from Friday, when world stock markets suffered heavy losses, as China's economic woes stirred up fears for global growth.

According to Lynch, volatility is likely to continue, with all eyes on the US Federal Open Market Committee and the RBA's interest rate decision next month.

6 REASONS FOR THE SLUMP IN GLOBAL SHAREMARKETS:

Commenting on the slump in global sharemarkets in recent trading days, CommSec Research suggested there have been six significant issues for global investors in recent months:

 

·      The Greek debt crisis

·      The slowdown of the Chinese economy

·      The correction of the Chinese sharemarket

·      The devaluation of the Chinese yuan

·      Uncertainty on when the US Federal Reserve start lifting interest rates

·      The rapid fall of global oil prices