Almost $60 billion has been wiped from the Australian share market in its heaviest fall in almost four years, as concerns about China's economy shake global investors.
Already down more than two per cent after a torrid morning of trade, the benchmark S&P/ASX 200 and the All Ordinaries indices hit two year lows after China's share markets plunged more than seven per cent in early trade.
The local indices were down 3.5 per cent at 1245 AEST, their largest single day fall since September 2011.
Losses are being felt across all market sectors, with the banking, mining and energy giants among the worst affected.
Renewed fears about China's slowing economy are the main factor, after manufacturing activity in the world's second largest economy slumped to six-and-a-half-year lows in August.
Volatility on Chinese share markets, recent moves by China to devalue its currency, plunging oil prices and uncertainty about when US interest rates will be lifted are also combining to spark the global share sell-off.
Wall Street plunged in its most recent session, with the Dow Jones Industrial Average losing more than 500 points and the S&P 500 fell below 2,000 points for the first time since January 30.
But CommSec chief economist Craig James said worries about China's economy are over-rated, with authorities there dealing with the "growing pains" of a maturing economy.
Rather than the beginning of a crisis, the market falls are a correction from highs reached earlier in 2015, he said.
"At present we would view the global sharemarket correction as a correction we had to have - a situation that will be beneficial in injecting more value into markets," Mr James said.
"There are clearly risks, but the data indicates that US and European economies continue to recover; lower oil prices will serve to boost consumer and business spending; and Chinese authorities are trying a range a measures to maintain momentum in their economy."
The big four banks were all more than 3.5 per cent weaker in early afternoon trade, energy producers were more than four per cent lower, and Telstra had dropped 2.8 per cent.
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https://au.finance.yahoo.com/news/worst-day-shares-four-years-031349544.html
Already down more than two per cent after a torrid morning of trade, the benchmark S&P/ASX 200 and the All Ordinaries indices hit two year lows after China's share markets plunged more than seven per cent in early trade.
The local indices were down 3.5 per cent at 1245 AEST, their largest single day fall since September 2011.
Losses are being felt across all market sectors, with the banking, mining and energy giants among the worst affected.
Renewed fears about China's slowing economy are the main factor, after manufacturing activity in the world's second largest economy slumped to six-and-a-half-year lows in August.
Volatility on Chinese share markets, recent moves by China to devalue its currency, plunging oil prices and uncertainty about when US interest rates will be lifted are also combining to spark the global share sell-off.
Wall Street plunged in its most recent session, with the Dow Jones Industrial Average losing more than 500 points and the S&P 500 fell below 2,000 points for the first time since January 30.
But CommSec chief economist Craig James said worries about China's economy are over-rated, with authorities there dealing with the "growing pains" of a maturing economy.
Rather than the beginning of a crisis, the market falls are a correction from highs reached earlier in 2015, he said.
"At present we would view the global sharemarket correction as a correction we had to have - a situation that will be beneficial in injecting more value into markets," Mr James said.
"There are clearly risks, but the data indicates that US and European economies continue to recover; lower oil prices will serve to boost consumer and business spending; and Chinese authorities are trying a range a measures to maintain momentum in their economy."
The big four banks were all more than 3.5 per cent weaker in early afternoon trade, energy producers were more than four per cent lower, and Telstra had dropped 2.8 per cent.
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https://au.finance.yahoo.com/news/worst-day-shares-four-years-031349544.html
