FEARS the US economy is faltering sent the Australian stock market into a tailspin today with more than $30 billion wiped off the accounts of superannuation holders and investors.
By mid afternoon, the benchmark S&P/ASX200 index was down 100.8 points, or 2.27 per cent, at 4332.8, while the broader All Ordinaries index was 102 points, or 2.26 per cent, weaker at 4,408.3.
Poor retail figures in June contributed to the further $5 billion drop in investor accounts from $25 billion earlier today, in what has been the share market's lowest point in almost a year, SMH reported.
Shares in Asia were also in the red, with Tokyo down 2.21 per cent, Hong Kong 2 per cent and Seoul 2.64 per cent. Shanghai was flat.
The Australian dollar fell to $US106.88 after the Australian Bureau of Statistics today said retail sales fell in June for the second straight month, before recovering at $US107.04 at noon. It closed at $US108.90 yesterday and has dropped more than US3 cents in two days, after closing at $US110.55 US cents on Monday.
US stocks fell heavily overnight, as poor economic data overshadowed a congressional deal to raise the country's debt ceiling and avoid default.
The Dow Jones Industrial Average fell 2.2 per cent, the S&P500 dropped 2.6 per cent and the tech-oriented Nasdaq index ended down 2.8 per cent.
Cameron Securities client adviser Adrian Leppinus said the local market was feeling the flow on effects from a nightmare session on Wall Street after downbeat US economic data overnight. Consumer spending in the US dropped 0.2 per cent in June - its first decline since September 2009.
“We've followed the US lead and we've had some pretty significant falls, especially in the commodity area,” Mr Leppinus said.
“The confidence of investors is quite low at the moment. There is value emerging, but investors are just cautious.”
Resources stocks led the market down. BHP Billiton shed $1.32 during morning trade, or 3.2 per cent, to $40.25, while Rio Tinto lost $1.97, or 2.46 per cent, to $78.08.
Banks were lower, too. National Australia Bank fell 76 cents, or around 3 per cent, to $23.21, Westpac lost 38c, or almost 2 per cent, to $19.99, ANZ was down 58c, by 2.8 per cent, at $20.24, while Commonwealth continued to fare best, down 89c, or 1.8 per cent, at $48.53.
Even defensive stocks were losing ground, with Woolworths down 12c, about half a per cent, at 26.70, Telstra down 2c to $2.99 and CSL down 71 cents, or 2.4 per cent, to $29.51.
The price of gold in Sydney was $US1653.30 per fine ounce, up $US28.33 from $US1624.97 at the close yesterday. Gold miner Newcrest was the best performer in the top 100, up 87c, or 2.17 per cent, at $40.90. Alacer Gold also performed well, up 22c, or 2.5 per cent, at $9.16.
BlueScope Steel was the worst performer in the top 100, shedding 6.5c, or 5.9 per cent, to $104.50.
National turnover was 976.5 million shares, worth $2.1 billion, with 138 shares trading higher, 764 lower and 282 steady.
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