Afternoon trading October 3

Thanks @shovel40, @Fiji1, @Patterns and morning crew.

Half-time wrap:

The ASX slumped to its lowest in more than six months as the dollar sank and global bond yields surged to multi-decade highs.

The ASX 200 declined 91 points or 1.29% to 6942, a level last seen in March. Resource stocks spearheaded a rout that lowered ten of eleven sectors. The energy sector shed 3.5%, materials 2.5% and REITs 2.1%. Healthcare gained 0.6%.

The bloodletting was even more severe at the smaller end of the market after the US small-cap benchmark, the Russell 2000, turned negative for the year. Here, the Small Ords dropped 1.9% to its lowest in nearly a year.

Today's smash-up followed a 1.1% dive in the dollar and pressure on commodity prices as the greenback hit a 10-month high. Bond yields were another headwind, with the Australian 10-year yield following its US equivalent to a multi-year high. The Aus 10-year yield hit 4.6% today for the first time since 2011.

The Reserve Bank met this morning and was widely expected to leave the cash rate target on hold at 4.1% when the decision was revealed at 2.30 pm AEDT.


Personal trading: Brutal morning at the top end of the market. ASX 200 could be going significantly lower if it doesn't hold around these levels. I don't shoot for the stars on days like this, just try to clip a few tickets off the lows. DUB gave half a pip. GTR and VIT are a chance. In and out of TOE for brokerage.