Wall St Swings, ASX Eyes Better Open
The Aussie market is heading for a 100 point rebound on the ASX 200 after a night of wild trading swings on global markets, culminating in the big rebound in the last hours of trading on Wall Street (see separate story).
The overnight futures market was up 48 points at am Sydney time and then 98 points at 7.25 am as Wall Street prices surged.
But as solid as a 100 point rebound for the ASX 200 will be, it will be a small portion of the 285 point plus slide on Monday and Tuesday.
But at least it will mean a positive opening - investors will be watching reaction to the Commonwealth Bank’s interim profit and Rio Tinto’s full year figures.
Tuesday’s slump sent tremors through local markets in reaction to the 1,175 plunge for the Dow on Monday in the US.
More than $56 billion was cut from the value of the stock market, as investors took fright at the prospect of interest rate hikes to counter rapidly rising inflation. That took the total since Monday to just under $90 billion, which won’t be recovered today.
The ASX 200 index dropped 192 points, or 3.2%, to 5833 for its worst one-day point fall since September 29, 2015 when it dropped 195 points, while the All Ordinaries index slumped 198 points, or 3.2%, to 5930
Financials were the worst performers by sector in Australia on Tuesday, losing 3.3% , as CBA shares dropped 3% to $77.40 and Westpac fell 3.1% to $30.33. Macquarie ended the day down 5.3% (despite a solid profit upgrade, see separate story) to $97.88 and Magellan fell 6.4% to $25.21.
Resource stocks also lost with BHP falling 2.7% to $2.72 , Woodside nearly 4% to $32.04 and Rio lost 1.4% to $75.43.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.