25th Aug 2015
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$60 billion sharemarket crash
$60 billion sharemarket crash

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





    COMMENTS

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    Bonny
    25th Aug 2015
    10:29am
    This is no crash this is a great buying opportunity.
    World Prophet
    25th Aug 2015
    10:36am
    Agree, Bonny. Having just sold our business (completing Sept 30th) I'm keeping the proceeds in cash, until I can see if Commonwealth Bank shares will go down to $ 22 again!
    Anonymous
    25th Aug 2015
    11:44am
    I wish you luck with that one World Prophet but Bonny is correct get in and have a go you may win.
    Adrianus
    25th Aug 2015
    11:47am
    Agree Bonny. As those prices drop the P/E ratios become more attractive.
    niemakawa
    25th Aug 2015
    3:53pm
    Apparently pensioners don't have enough money to pay the bills and buy food. So it is unlikely they will have any spare cash to buy shares at a giveaway price. But we will see!!
    Adrianus
    25th Aug 2015
    11:44am
    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?
    KSS
    25th Aug 2015
    12:54pm
    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.
    Adrianus
    25th Aug 2015
    2:21pm
    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.
    Foot
    25th Aug 2015
    1:42pm
    Joe Hockey, United States, full employment?
    Oldie84
    25th Aug 2015
    1:42pm
    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.
    Sceptic
    25th Aug 2015
    1:57pm
    Day trading may be like going to the casino Oldie, but true investors take the long view. If you take the trouble to look at share value growth over the long term, you will see how silly your comments are.
    Oldie84
    25th Aug 2015
    3:00pm
    Only if you can tell me if dividends have grown commensurately Sceptic.
    niemakawa
    25th Aug 2015
    3:52pm
    No money in the pot this time. Dig deep we will have to give the $ 900.00 back plus compound interest. Whoopee!!
    Young
    25th Aug 2015
    4:13pm
    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.
    niemakawa
    25th Aug 2015
    11:53pm
    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.
    Kt
    25th Aug 2015
    6:06pm
    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 !
    Strummer
    26th Aug 2015
    7:59am
    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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