$60 billion sharemarket crash

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The media are calling it Bloody Monday, others Black Monday, but no matter what you are calling it, yesterday remains the worst day of losses for the Australian sharemarket since the global financial crisis. The ASX 200 Index ended the day down 4.1 per cent to 5001.3 points wiping off more than $60 billion and ending the day at the lowest level in more than two years.

Global markets felt the full effect of the sell-off with London’s FTSE down more than 3 per cent. The Nasdaq fell more than eight per cent before rallying to close just 2.4 percent down and a similar trend was seen on the Standard & Poor’s 500 index, which was down five per cent on opening before rallying back up to two per cent an hour later. As a result of global market overnight trading, the Australian market is expected to be in for another bloodbath today.

“Markets will go up and down . . . the fundamentals are still good for the global economy and particularly for the United States economy, which is growing relatively strongly and now has full employment,” said Federal Treasurer Joe Hockey on ABC radio.

St George chief economist Hans Kunnen agrees with the Federal Treasurer.

“Nothing has fundamentally changed from a month ago,” he said. “Commodity prices were already weak; apart from oil, they’re not particularly weaker, iron ore has held its ground, and we’ve seen solid job growth over the past 12 months.”

Read more from the Sydney Morning Herald
Read more from www.abc.net.au
Read more from The Age

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Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).


Total Comments: 17
  1. 0

    This is no crash this is a great buying opportunity.

  2. 0

    The ASX did not have a crash. It didn’t even have a correction. I watched the ASX drop 1% this morning in the first 9 minutes of trade, but by now recovered to be in a positive 1.25% position.
    This just confirms how jittery the market has become and more so than ever, reliant on the big global economies of China, USA and Japan. Why is China waiting to apply more stimulus to the Shanghai exchange? The longer they stall the more chance Japan will slide into recession. Just a thought?

  3. 0

    More hysterical reporting from the left wing media. The fact is shares do go down as well as up always have always will. Bonny is right this is a buying opportunity for those with a stronger stomach than Fairfax Press and the ABC. Losses are only losses if you sell. Its all paper calculations until then, just as it is when stocks rise. You only make a ‘profit’ if you sell.

    People need to take a deep breath, fill up the car whilst oil prices are low and wait. The sky won’t fall in and the sun will come up again tomorrow.

    • 0

      KSS one of the problems of a downturn as we’ve seen in the last 6 months is that it only takes a day like yesterday to trigger a bank call on some margin loans.

  4. 0

    Joe Hockey, United States, full employment?

  5. 0

    The share market is like going to the casino and playing the tables. All I can say if there is all this selling and price drops there must be someone buying. You tell me.
    I used to buy shares a long time ago before the nightly updates, to me cost vs earnings were important. Not gambling on wether someone paid more for the shares later.

  6. 0

    No money in the pot this time. Dig deep we will have to give the $ 900.00 back plus compound interest. Whoopee!!

  7. 0

    We don’t need statements made to create a panic.This seems like a correction not a crisis.It is a great buying opportunity.Sometimes the press and commentators create panic in vulnerable people and so a crisis develops.Things are not as bad as some of the commentators and news people would like.

    • 0

      Not vulnerable (that word again!!) people, just people that can’t keep their nerve. Astute traders know when to take profits, then they come back into the market shortly after and shares rebound. Normal stuff.

  8. 0

    The newspapers and television news is talking this up – please stop making a panic when we don’t have one ! You scaremongering actually cause panic in the market .
    Good time to buy , be positive !

  9. 0

    A few months ago CBA shares were pushing the $100.00 barrier, now they’re selling for $75.00, how’s that for a bargain.



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