Australian shares are on target for their biggest two-day tumble since March as European debt fears roil regional markets.
At lunchtime the ASX 200 was off 81 points or 1.8% at 4500 with all sectors turning a deep shade of red. The big banks copped much of the heat, in line with the overnight trend on overseas markets, dragging the financial sector down 2.1%. Also hit hard were health stocks -2.1%, consumer discretionary -2.1% and industrials -1.9%.
"Every time we seem to be getting momentum, the European debt issue seems to rear its ugly head, and we are at the mercy of that," Lucinda Chan, division director at Macquarie Equities told Fairfax. "The bottom line is that there is uncertainty in the market, and investors are going to face that for some time to come."
Asian markets hit the skids as US futures pointed to a third night of falls. Japan's Nikkei fell 1.53%, Shanghai 1.09% and Hong Kong's Hang Seng 2.07%. Dow futures were recently down 89 points or 0.7%.
The Australian dollar continued to slide, losing another half a cent this morning. The Aussie was recently buying US $1.0595.
Crude oil futures plunged 64 cents this morning to US $94.50 a barrel. Spot gold was $7.90 stronger at US $1,551.90 an ounce.
The curse of Highlandlad is alive and well. Down 150 points in two days since I returned. Lucky this forum has a ban on foul language because I've been swearing like a navvy all morning. Opened positions in a few mid-caps in anticipation of some sort of bounce some time this arvo but there are no guarantees with this weight of selling. Holding CWN, BLD, ABC, CGF and PBG.
