The share market slumped this morning to its lowest level since early September as a global sell-off swept through Asia.
At lunchtime the ASX 200 was down 130 points or 2.8% at 4490, where it last traded five months ago. The index is on target for its fourth straight week of losses and is now down around 9% from its January 11 high.
Health was the only sector to rise as sliding commodity prices ravaged resources shares. Property trusts led the falls, down 4.5%, followed by gold -4.4%, metals & mining -4.4% and materials -4.1%.
The RBA warned this morning that further interest rate rises are still likely this year if the economic recovery continues. In its February Statement on Monetary Policy, the bank said, "If economic conditions gradually strengthen as expected, it is likely that monetary policy will need to be adjusted further over time to ensure that inflation remains consistent with the (2-3%) target over the medium term."
Asian markets skidded lower. Japan's Nikkei dropped 2.8%, Shanghai 2.1% and Hong Kong's Hang Seng 3.1%. Dow futures were recently at +7.
The spot gold price drifted another 60 cents lower this morning to $1,062.40 an ounce. Crude oil futures were little changed at $73 a barrel.
A solid morning of bounce trades here - just not enough of them. Was too bearish with my buy orders and didn't get into as many trades as I like. Did okay with CDU, NWH and later a skinny bounce in UNS.
No sign of a turning point in the market yet. Stay nimble, folks.
