Bloodbath on the stock market as Australian shares plunge $67BILLION over rising interest rate fears
- Australian share market’s benchmark S&P/ASX200 lost $67billion on Tuesday
- The initial 2.5 per cent fall in first hour of trade followed Wall Street plunge
The Australian share market lost $67billion in the opening half hour of trade as interest rate rise fears caused an initial 2.5 per cent plunge.
The benchmark S&P/ASX200 bled after Wall Street continued to plummet.
The 2.5 per cent fall on the local share market was less severe than the 3.2 per cent drop on New York’s S&P 500.
But it still caused a $67billion plunge in the value of Australian shares in the top 200 companies by 10.30 on Tuesday morning, just half an hour after the market opened.
All 11 sectors of the Australian share market were weaker.
The Australian share market lost $67billion in the opening hour of trade as interest rate rise fears caused an initial 2.5 per cent plunge.
CommSec market analyst Steven Daghlian said share markets had reacted badly to the US Federal Reserve last week raising a key interest rate by a half a percentage point – the biggest increase in 22 years.
‘It’s contributed to it. Markets more broadly are just getting used to that idea that rates have already increased and they’re going to probably continue to do so,’ he told Daily Mail Australia.
The losses moderated in the early afternoon, with the market 1.27 per cent weaker shortly before 2pm, Sydney time, at 7,030.6 points.
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Read more at DailyMail.co.uk