The ASX has followed Wall Street, exhibiting clear losses across the board. But amongst the violence, who was hit hardest?
The other shoe has certainly dropped. The ASX has followed Wall Street’s historically awful day, tumbling down the rabbit hole, shedding $57 billion dollars in morning trading. At the time of writing, the ASX had fallen by 3% with uniform losses posted across all sectors.
Over in America, the theories are numerous. Lindsey Bell, Investment Strategist from CFRA shared this via Twitter: “The thing about this move is, there’s nothing fundamental driving it.” She also pointed out that the S&P 500 has dropped by 4.6% or more 34 times since WWII, but pointed to that fact that the market will rally the next day.
Which is all well and good for tomorrow, but with the bloodbath now rising above our calves, the time to take stock of ours is at hand, which the Australian market bleeding $87B over the last two days.
Today’s losses are highlighted by the Energy and Banking sectors, with some rather large names taking some rather large hits.
With everything on the ASX 200 taking a hit, the ripple effect is clear, as Ian Verrender, The ABC’s business editor pointed toward the very real effect on what this would do to those Australians who rely on these funds, or one day hope to: “In Australia, we all have our superannuation funds heavily invested in the stock market…half of super funds are in the Australian stock market and the rest is around the world in global bond markets and stock markets and so we are all affected.”
Some are pointing to poor local retail growth, as per the chart below:
— Callam Pickering (@CallamPickering) 6 February 2018
But the general rhetoric from the Wall Street this morning seems to point the blame at increased interest, or the expanse of one Donald J. Trump.
— David Lantrip (@DavidLantrip) 5 February 2018
As of 12:30pm, the Australian Financial Review figures the hardest hit as below:
Now if you’ll excuse me, I’m off to bury my money under my clothesline.