Australian share market suffers in our worst trade week

12 October 2018

Written by: Marisa Sopcic

Wall Street tumbled overnight amid a volatile trading session.

Losses made in the market this morning made it Wall Street’s worst week since January 2016.

Concerns over rising interest rates and the impact of trade wars on corporate earnings increased with investors backing out of high risk investments in today’s trades.

The benchmark S&P/ASX200 index [Standard and Poor’s benchmark for Australian equity performance] was down 37.1 points to 0.63 per cent, its sixth day straight of losses while the broader All Ordinaries was down 39.3 points to 0.66 percent.

The Australian dollar was buying 71.25 US cents on Thursday, as the day’s trade saw 2.7 per cent wiped off the aforementioned benchmark ASX200, sending it to a five-month low.

The Dow Jones tumbled by 832 points, its worst day in eight months while Nasdaq index dropped 15.31 points, 0.21 percent, to 7,406.74.

The biggest losses in Dow were JPMorgan Chase, Exxon Mobil, McDonald’s, Pfizer and Procter & Gamble, which all fell at least 2 per cent.

Australia’s ASX futures are down 47 points, which will mean Australia’s share market drop further into the red [falling in debt or losing money].

Gold jumped up by 2.5 per cent to US$1,222 an ounce as investors rushed to safe haven assets [investments that are expected to retain or increase in value during times of market turbulence].

The Australian Dollar has lifted to 71.2 US cents, 53.8 British pence, 61.4 euro cents and 79.8 Japanese yen.

The European markets suffered steep losses, with London and Paris falling by 1.9 per cent each as global stocks in both Europe and Asia fell following the down trend of the United States.

[Photo]: ‘Trading Floor at the New York Stock Exchange during Zendesk IPO’ by Scott Beale/ Laughing Squid available here and here and used under a Creative Commons Attribution.