Share mar­ket suffers in light of concern in Europe, US

Townsville Bulletin - - Investor -

THE Aus­tralian share mar­ket has suf­fered its worst weekly fall in just over nine months, los­ing ground yes­ter­day as sen­ti­ment was fur­ther eroded by eco­nomic con­cerns in Europe and the United States.

T h e b e n c h m a r k S & P / A S X 2 0 0 i n d e x l o s t 5 4 . 9 points, or 1.17 per cent, to 4 6 4 4 . 8 p o i nt s , whil e t he broader All Or­di­nar­ies in­dex dropped 56.5 points, or 1.18 per cent, to 4,734.8 points.

Both in­dices lost 4.5 per cent for the week, their largest losses since late May.

The mar­ket has closed lower in seven out of its past 10 ses­sions.

On the ASX 24, the March share price in­dex fu­tures con­tract was 58 points lower at 4631 points, with 63,369 con­tracts traded.

IG Mar­kets strate­gist Ben Pot­ter said neg­a­tive news from Europe and China had only added to neg­a­tive in­vestor sen­ti­ment al­ready ev­i­dent as the sit­u­a­tion in the Mid­dle East wors­ens, caus­ing oil prices to rise.

‘‘ This pull­back started with the ten­sions in the Mid­dle East and surg­ing oil prices. Now a few other con­cerns have re-emerged and are com­bin­ing to de­rail con­fi­dence and sen­ti­ment,’’ he said. ‘‘ We’re not overly con­cerned about fears of China slow­ing, but see the Mid­dle East and Euro­pean sov­er­eign debt is­sues as more press­ing con­cerns for the mar­ket.’’

AMP Capit a l I nvest o r s head of in­vest­ment strat­egy Shane Oliver said the mar­ket was un­der­go­ing a cor­rec­tion which was likely to con­tinue as un­cer­tainty lingers in the Mid­dle East.

‘‘ In the short term, the cor­rec­tion in shares looks like it has fur­ther to run as the un­rest in the Mid­dle East still looks like be­ing some way from be­ing re­solved and we might be head­ing into an­other round of wor­ries,’’ he said.

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