Aust market reopens amid Wall Street slump
Posted
![US investors have been seized by fears of a credit crunch [File photo].](http://www.abc.net.au/reslib/200707/r163463_602447.jpg "US investors have been seized by fears of a credit crunch [File photo].")
US investors have been seized by fears of a credit crunch [File photo]. (AFP/Getty Images: Mario Tama)
The Australian share market has reopened after a wild night on Wall Street.
United States investors have run for cover, after a slump in sales of new homes in America and fears that mortgage market problems will affect credit availability in the broader economy.
After being down 450 points at one stage, New York's Dow Jones index finished 312 points lower, in a slump of 2.25 per cent.
CommSec market analyst Juliana Roadley says overnight movements on the local futures market suggest the All Ordinaries index could drop as much as 150 points this morning.
"It could be an ongoing trend, we saw that most of the global markets were weaker ahead of the weakness coming through in the US housing new home sales overnight in the US," she said.
US investors have been seized by fears of a credit crunch as problems in the risky end of the mortgage market continue to spread to the wider corporate sphere.
A 6.6 per cent downturn in new home sales across America has exacerbated the concerns.
It has been another black day on the British market, as the London's FT 100 index slumps 203 points to 6,251, a decline of almost 3.2 per cent.
The Australian share market was in reverse again yesterday, with speculation of a looming interest rate increase hurting the banks, while resource stocks fell on lower metal prices.
4 comments on Aust Market Reopens Amid Wall Street Slump
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APOLITICALNUT
said 1 years ago
[SMILE] We should not worry in the least about these little fluctuations in the stock market. No INVESTOR has lost a penny! No one has ever lost money investing in a broad portfolio (such as the S&P 500) with periodic purchases using a buy-and-hold strategy. When I was working and friends would worry about a slumping stock market I would smile and say "When the market is up I am happy because I feel rich, when the market is down I am happy because my weekly investment is buying more shares." Always stay in the American stock market and you will become wealthy!
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whereabouts
said 1 years ago
it has profound impact on global markets, furthermore, it is an indication of economic stability or instability. Whatever the sign, we must pay attention to what it is saying.
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APOLITICALNUT
said 1 years ago
The stock market always fluctuates. That's what it does. Speculators cause the market to soar and crash and soar again because that is how brokers make money and how most day traders lose money. We have seen all this before and we will see it again. Investors should not worry.
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whereabouts
said 1 years ago
you don't get it.
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