ASX takes huge $63b hit

Worst day in 18 months amid global meltdown

THE Australian share market has shed more than $63 billion in its worst day in 18 months amid a global market meltdown as investors fear a recession is near.

The benchmark S&P/ ASX200 index yesterday tumbled 187.8 points, or 2.85 per cent, to 6408.1 points, while the broader All Ordinaries shed 186.7 points, or 2.8 per cent, to 6490.8 points.

It was the market’s worse day since February 6, 2018, when the ASX200 lost 192.9 points, or 3.2 per cent.

The Aussie dollar was buying 67.83 US cents from 67.82 US cents on Wednesday.

The Aussie bourse followed the lead of Wall Street, where the Dow Jones Industrial Average had finished down 3.05 per cent – its biggest one-day point drop since October – while the S&P 500 was down 2.93 per cent and the techheavy Nasdaq Composite was down 3.02 per cent.

The US Treasury yield curve temporarily inverted for the first time since June 2007 – with two-year Treasury yields surpassing those of 10-year bonds – in a development that has often preceded recessions.

In Australia, energy and tech shares had the largest losses, sliding 5.3 per cent and 4.9 per cent, respectively.

Most sectors were down at least 2.0 per cent, with property groups the least hit with 1.7 per cent losses.

Santos, Oil Search, Origin Energy and Beach Energy fell between 3.5 and 6.7 per cent after crude prices dropped below $US60a barrel while Woodside Petroleum fell 6.7 per cent after the oil and gas producer cut its interim dividend. Wisetech Global,Afterpay, Appen, Altium and Xero fell between 3.5 per cent and 7.3 per cent.

Mining giant BHP was down 2.8 per cent to $36.39, Rio Tinto was down 2.6 per cent to $85.60 and Fortescue Metals was down 0.8 per cent to $7.50. Goldminers were among the very few winners as the price of the precious metal climbed back up to $US1,510.

Northern Star, St Barbara and Evolution were up between 1.6 and 1.8 per cent. Cryptocurrencies proved no safe haven, with Bitcoin down 8.7 per cent to $A14,230 or $US9,579 on Sydney exchange the Independent Reserve.

The big four banks were lower,with ANZ down 3.0 per cent to $26.23, Commonwealth down 3.0 per cent to $74.34, NAB down 3.1 per cent to $26.80 and Westpacdown 3.2 per cent to $27.61.

The local currency lifted against the US dollar after the ABS announced the country’s unemployment rate held steady at 5.2 per cent in July.