Australian stock market loses $20 billion within hour of opening
AAP
The ASX plunged by $20 billion at the start of trade today. (AAP stock)
fteA
The Australian share market has plunged at the start of trade, haemorrhaging $20 billion within an hour of opening, with losses being felt across the board from banks to resources stock as uncertainty grips global markets.
The benchmark S&P/ASX 200 and the All Ordinaries indices fell more than 2.4 per cent within the first 20 minutes of trade today.
Banking giants including the Commonwealth, Westpac, National Australia Bank and ANZ along with the big miners Rio Tinto and BHP Billiton all shed about two per cent each.
Mum and dad favourite, Telstra, had also dropped by more than one per cent.
The tumbles came after a torrid session on Wall Street last week when the Dow Jones Industrial Average lost more than 1,000 points and the S&P 500 fell below 2,000 points for the first time since January 30.
As well as renewed fears about China's economy and a possible exit from the eurozone by Greece, investors were unsettled by US oil prices which on Friday dipped below $US40 for the first time in six years.
CommSec chief economist Craig James said that despite the uncertainty on global markets, the US and Australian economies remained in good shape.
He also believed worries about Greece and China were over-rated.
"At present, we would view the global sharemarket correction as a correction we had to have - a situation that will be beneficial in injecting more value into markets," Mr James said.
"There are clearly risks, but the data indicates that US and European economies continue to recover; lower oil prices will serve to boost consumer and business spending; and Chinese authorities are trying a range a measures to maintain momentum in their economy."
Treasurer Joe Hockey said that while markets will go up and down, the fundamentals were still good for the global economy, particularly the US.
He said several factors would cause volatility in the markets in the next few months, particularly any decision by the US Federal Reserve to move on interest rates in September.
"If they do increase their interest rates, then you will see movement of money from equity markets, probably into bond markets," he said.
He said such volatility would hit confidence in Australia and that's why the government had to keep reminding people that their economy is one of the fastest-growing in the world right now.
Investors are now anxiously waiting for the Chinese market to open.
KEY FACTS
* At 10.47am AEST on Monday, the benchmark S&P/ASX200 index was down 93.8 points, or 1.8 per cent, at 5,120.3 points.
* The broader All Ordinaries index was down 96.5 points, or 1.84 per cent, to 5,,128.3 points.
* The September share price index futures contract was down 96 points at 5,072, with 18,891 contracts traded.
* National turnover was 777 million securities worth $1.53 billion.
© AAP 2015
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Australian stock market loses $20 billion within hour of opening
breh.
You posted it on Saturday
