There was an eye-watering slaughter on Australia’s market yesterday after a horror day on Wall Street lost over $45 billion just minutes. For more, economist Shane Oliver explains what caused it and the foreseeable future of our economy.
The Australian share market shed greater than $45 billion in opening trade on Monday soon after US Federal Reserve chairman Jerome Powell warned higher rates were here to stay.
The benchmark S&P/ ASX200 opened 1.74 per cent weaker as investors on the Australian Securities Exchange responded badly to chairman Powell’s Friday night speech.
Traders as well as economists fear more rate rises would spark a recession in the world’s biggest economy, with such concerns influencing every sector of the share market.
These losses intensified in late morning hours trade with the S&P/ ASX200 down 2.25 percent to 6,944.2 points at noon.
The Commonwealth Bank, Australia’s major home lender, dropped 2.1 percent to $96.25 during the afternoon trade.
Australia’s share market’s decreases are quiet moderate compared with Wall Street where the Dow Jones Industrial Average on Friday night finished 3 per cent lower at 32,283.4 points.
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