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Australian Shares Slide as Global Sell-Off Erases Gains From US Election Rally
Australian shares slid on Friday, with the ASX 200 down 0.49 per cent as global markets fell and erased gains from the US election rally.
Key points
- The ASX 200 fell 0.49 per cent to 9020.80, while the All Ordinaries dropped 0.66 per cent to 9144.70.
- The Australian dollar slumped 0.47 per cent against the US dollar to buy 68.97 US cents.
- The S&P 500 sank 4.4 per cent after rising 1.6 per cent on Wednesday, and the Nasdaq entered a correction.
Why it matters. Global X strategist Billy Leung said Australia will not be immune to a sustained reduction in global risk appetite, though its limited weighting to large technology companies provides some insulation.
Australia's sharemarket closed lower on Friday as the ASX 200 fell 0.49 per cent, or 44.30 points, to 9020.80, following world markets. Materials fell 2.51 per cent and technology 0.78 per cent, with BHP down 2.34 per cent to $57.62, while seven of 11 sectors finished lower. Betashares chief economist David Bassanese said the early blue wave euphoria turned within 24 hours as AI-related tech stocks were pummelled.
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Australian Shares Slide as Global Sell-Off Erases Gains From US Election Rally
Australia's sharemarket fell in line with global markets as investors weighed what a Democratic "blue wave" in the US could mean for stocks. The benchmark ASX 200 fell 0.49 per cent, or 44.30 points, to close at 9020.80. The broader All Ordinaries dropped 0.66 per cent, or 60.50 points, to 9144.70. Reports estimate that about US$2.5 trillion was wiped from the Nasdaq as early euphoria turned to panic. The ASX recovered some of its morning losses before the close but still finished in negative territory.
Australian Shares Set to Rise as Wall Street Rally Fades and Oil Prices Tumble
US stocks rallied early in Monday trading but gave up most of their gains as technology and artificial intelligence companies remained under pressure after last week's sell-off. The S&P 500 sank 0.5 per cent after erasing an early gain of 1.1 per cent. The Dow Jones Industrial Average rose 213 points, or 0.4 per cent, while the Nasdaq composite fell 1.1 per cent. Oil prices also tumbled, and the Australian share market was set to rise on the day of the Reserve Bank of Australia's rate decision. The moves follow a sell-off led by tech and AI stocks that rattled global markets the previous week.