Australian share market loses $60BILLION in 30 minutes as global inflation fears spook investors
- Australian share market lost $60billion in first half hour after a 2.5 per cent fall
- Investors sold stocks after Switzerland, UK and Taiwan joined US in raising rates
Australia’s share market has lost $60billion in half an hour as global inflation fears caused a 2.5 per cent plunge – taking it back to 2020 levels.
A half a percentage point interest rate rise in Switzerland, the first in 15 years, on the back of this week’s 0.75 percentage point rate hike in the U.S., the biggest since 1994, has caused a decline in every major sector of the Australian Securities Exchange.
Interest rates were also raised in the UK and Taiwan, causing a 3.25 per cent plunge on Wall Street’s key S&P 500 index.
Australia’s benchmark S&P/ASX200 was down 2.5 per cent to 6,425.7 points by 10.30am on Friday, Sydney time, just 30 minutes after the market opened.
Australia’s share market has lost $60billion in half an hour as global inflation fears caused a 2.5 per cent plunge
The Australian share market is now 15 per cent below the peak in April and is back to its worst level since November 2020 shortly after the Reserve Bank of Australia cut the cash rate to a record-low of 0.1 per cent.
Another negative finish on Friday would mark the sixth straight session of losses.
CommSec market analyst Steven Daghlian said global inflation fears were scaring investors across all sectors from banking to consumer staples like the big supermarkets.
‘We’re continuing to see widespread declines as well,’ he told Daily Mail Australia.
‘Rough going, of course the main driver has been what has happened with what central banks are doing – some of the largest rate hikes we’ve had in decades around the world.’
Within the first hour of trade, Commonwealth Bank shares were down 3.6 per cent to $87.23.
Mining giant BHP fell 3.9 per cent to $42.21 as supermarket giant Coles fell 1.1 per cent to $16.62.