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You can find the current article at its original source at https://www.theguardian.com/business/2018/nov/21/australian-stock-market-two-year-low-tech-energy-wall-street-ftse-dollar-us-uk
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| Australian shares dive to two-year low on tech and energy sell-off | Australian shares dive to two-year low on tech and energy sell-off |
| (35 minutes later) | |
| The Australian share market has dived to near two-year lows amid a global stock sell-off and fresh signs that the local economy is struggling. | |
| The benchmark S&P/ASX200 index was down 54 points, or 0.95%, to 5,617 at midday in Sydney on Wednesday, while stocks across the rest of Asia Pacific followed US markets lower with Tokyo and Seoul both off more than 1%. | |
| The Aussie dollar has also slipped further, buying US72.14c from US72.76c on Tuesday, and more than 1% down from the weekend. | The Aussie dollar has also slipped further, buying US72.14c from US72.76c on Tuesday, and more than 1% down from the weekend. |
| Plummeting oil prices – weakened by wider uncertainty in global shares – have decimated local energy stocks, with the sector dropping by more than 3% early on. | Plummeting oil prices – weakened by wider uncertainty in global shares – have decimated local energy stocks, with the sector dropping by more than 3% early on. |
| The ASX200 hasn't been spared from this cycle. The index fell with far greater force than was anticipated during yesterday's, as the broad-based evacuation from equities persisted. Read on https://t.co/oNt19tfjcU @KyleR_IG | |
| Falling energy shares also contributed to Wall Street’s overnight slump, where trade tensions and a sell-off in technology stocks caused havoc. | Falling energy shares also contributed to Wall Street’s overnight slump, where trade tensions and a sell-off in technology stocks caused havoc. |
| The Dow Jones industrial average was down 555 points, or 2.2%, and the tech-heavy Nasdaq was off 1.7%. The leading tech companies have now lost a combined $1trn in value since their year highs. | The Dow Jones industrial average was down 555 points, or 2.2%, and the tech-heavy Nasdaq was off 1.7%. The leading tech companies have now lost a combined $1trn in value since their year highs. |
| The falls come as two closely watched indicators survey pointed to trouble ahead for the Australian economy. | |
| The Westpac–Melbourne Institute leadingindex, which indicates the likely pace of economic activity three to nine months into the future, fell from 0.41% in September to just 0.08% in October. | The Westpac–Melbourne Institute leadingindex, which indicates the likely pace of economic activity three to nine months into the future, fell from 0.41% in September to just 0.08% in October. |
| Westpac’s chief economist, Bill Evans, said: “With this latest slowdown, the index growth rate continues to point to slowing momentum into the new year. | Westpac’s chief economist, Bill Evans, said: “With this latest slowdown, the index growth rate continues to point to slowing momentum into the new year. |
| He blamed weak wages growth, falling property prices in Sydney and Melbourne and a very low savings rate for the poor outlook for consumer spending. | He blamed weak wages growth, falling property prices in Sydney and Melbourne and a very low savings rate for the poor outlook for consumer spending. |
| In addition, the NAB monthly cashless retail sales index published on Wednesday said data mapping suggested that the official Australia Bureau of Statistics measure of retail sales would grow at a worse-than-expected 0.2% month-on-month in October. | |
| NAB cashless retail sales points to a 0.2% increase in the ABS official measure for October. Spending is particularly weak in NSW, but not VIC. Australia's retail sales slowdown looks like it's becoming entrenched (via @BIAUS) https://t.co/XLQLktcdb6 pic.twitter.com/UTe6qVjzLU | |
| Heavyweight materials stocks weighed significantly at Wednesday’s open in Sydney after metal prices took another hit overnight. BHP, the country’s second biggest company by market value, fell 2.57% to $31.85 and Rio Tinto was down 2.55% to $77.84. | Heavyweight materials stocks weighed significantly at Wednesday’s open in Sydney after metal prices took another hit overnight. BHP, the country’s second biggest company by market value, fell 2.57% to $31.85 and Rio Tinto was down 2.55% to $77.84. |
| Fortescue Metals, BlueScope Steel and South32 were down as the price of iron ore continued to fall. | Fortescue Metals, BlueScope Steel and South32 were down as the price of iron ore continued to fall. |
| Healthcare was the only bright spot for the bourse after the sector giant CSL jumped 0.89% to $177.32, and Sonic Healthcare also lifted on a stronger earnings report. | Healthcare was the only bright spot for the bourse after the sector giant CSL jumped 0.89% to $177.32, and Sonic Healthcare also lifted on a stronger earnings report. |
| The big four banks were all down, with the losses led by ANZ, which posted a 0.77% drop to $25.105. Commonwealth Bank, whose chair, Catherine Livingstone, was on the stand at the banking royal commission on Wednesday morning, fell 0.6%. | The big four banks were all down, with the losses led by ANZ, which posted a 0.77% drop to $25.105. Commonwealth Bank, whose chair, Catherine Livingstone, was on the stand at the banking royal commission on Wednesday morning, fell 0.6%. |
| Tech shares continued to fall, losing more than 2.8% early, with telco stocks also down. | Tech shares continued to fall, losing more than 2.8% early, with telco stocks also down. |
| Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo, told Reuters: “It is difficult to pinpoint a single factor driving the global risk aversion. Apple and trade tensions seem to be touted as factors every other day, but it is difficult to blame them for all the woes. | |
| “The markets appear to be starting to prepare for a loss of momentum in the global economy, although it is doing quite well at the moment.” | |
| Australian Associated Press and Reuters contributed to this report. | |
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