Australian markets plunge on opening after poor lead from Wall Street
Australia's stock market opened nearly 2 per cent down following a sharp decline on Wall Street overnight on worries about a property slump and rising inflation.
By Agencies |
SYDNEY: Australia's stock market opened nearly 2 per cent down Tuesday following a sharp decline on Wall Street overnight on worries about a property slump and rising inflation.
The benchmark S&P/ASX 200 index lost 107.6 points, or 1.72 per cent, to 6,155.9 shortly after opening, taking the market to a three-month low. Analysts warned investors to brace for more falls.
``I'd be optimistic if I thought it was going to be a better day,'' said ABN Amro Morgans manager Tony Russell, predicting that a weak lead from Wall Street and lower base metals in London would weigh locally.
In the United States, the Dow Jones industrial average fell more than 170 points overnight and all the major indexes lost at least 1 percent as investors reacted to concerns about signs of possible ``stagflation'' _ when prices rise as the economy slows.
Australia's big mining and energy stocks were all weaker Tuesday, as oil prices slipped overnight.
Investors also fled the property sector, as local shopping center owner Centro Properties Group became the latest casualty of the global credit crunch.
The company's stocks plummeted Monday after it revealed financing problems due to the credit crisis.
"Centro are down over 58 percent today. It's just a matter of them having some sort of strategy for securing their funding,'' Russell said. ``Until that happens I think the market is still going to be very concerned with them.''
The benchmark S&P/ASX 200 index lost 107.6 points, or 1.72 per cent, to 6,155.9 shortly after opening, taking the market to a three-month low. Analysts warned investors to brace for more falls.
``I'd be optimistic if I thought it was going to be a better day,'' said ABN Amro Morgans manager Tony Russell, predicting that a weak lead from Wall Street and lower base metals in London would weigh locally.
In the United States, the Dow Jones industrial average fell more than 170 points overnight and all the major indexes lost at least 1 percent as investors reacted to concerns about signs of possible ``stagflation'' _ when prices rise as the economy slows.
Australia's big mining and energy stocks were all weaker Tuesday, as oil prices slipped overnight.
Investors also fled the property sector, as local shopping center owner Centro Properties Group became the latest casualty of the global credit crunch.
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The company's stocks plummeted Monday after it revealed financing problems due to the credit crisis.
"Centro are down over 58 percent today. It's just a matter of them having some sort of strategy for securing their funding,'' Russell said. ``Until that happens I think the market is still going to be very concerned with them.''
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