The S&P/ASX 200 slumped again on the open, after absorbing one of Wall Streets biggest one day falls in history. The market is down over 168 points or 4.4% and stands at 3817 points.
Other Asian markets are experiencing similar sharp losses, with the Nikkei 225 down 4.5% at 8692 points, and the Hang Seng falling further, down 6.5% at 19010 points.
Other risk assets are having similar palpitations, with the AUD just below parity against the USD, 99.67 cents!! Gold has rallied strongly and continues to hit all time record highs, now at $1742 USD an ounce. WTI crude continues to fall, now down almost 3% to $84.40 USD per barrel.
Movers and Shakers
It’s red across the board, with all sectors falling, although energy and IT sectors hit the most. The banks are down between 3 and almost 4% with Macquarie down 4.5%
The resource twins BHP and RIO are again the main suspects in pushing the index into deep negative territory, down 3.5% and 5.6%. Cochlear (COH) and CSL – are down 3.7% and 4.1% respectively, although management must be welcoming the below parity weakness in the AUD.
Well I got the “rebound surprise” wrong didn’t I?
The Australian market will be going through some high volatility in the month ahead because of the full year earnings season (Australian companies only report twice a year), which will add to the overall market bipolar behaviour.
Local earnings season continues – today its Reckon(RKN), Cochlear (COH), Coca Cola Amatil (CCL) reporting and National Australian Bank (NAB) updating its last quarter. Remember to bookmark the overall update here.