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Carnage in the Australian stock market as the ASX falls 2% after Wall Street hit new lows and the British pound collapsed
- Australian Securities Exchange 2 percent weaker in first hour of Monday trading
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The Australian stock market fell two percent at the opening of trading after Wall Street hit a new low for the year and the British pound plunged to 1985 levels.
The Australian Securities Exchange’s benchmark S&P/ASX200 was weaker by 1.9 percent at 6,447.3 points in its first trading hour on Monday.
The plunge reflected the Wall Street slump, with the New York benchmark Dow Jones Industrial Average ending 1.6 percent weaker after hitting a new low of 20,000 and closing below 30,000 for the first time since June.
Worries about global inflation and sharp interest rate hikes from the US Federal Reserve.
Global risk appetite took another blow as British pound sterling fell to its lowest level since 1985 after new Conservative Prime Minister Liz Truss and her new Chancellor of the Exchequer Kwasi Kwarteng unveiled a mini-budget with significant tax cuts, fueling concerns about worsening inflation .
The Australian stock market is down 2% as it opens trading after Wall Street plunged to a new low for the year (Pictured is the Australian Securities Exchange in Sydney)