More than $45 billion was wiped off the value of Australian stocks yesterday, as global economic woes again haunted investors.
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The ASX dropped 156 points, or 3.7%, by the close, to 4038.5 while the broader All Ordinaries plunged by 152 points, or 3.6%, to 4125.1.
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The drops hit all sectors, with financial, materials and energy stocks all suffering significant losses. The big four banks were all down, with the Commonwealth Bank’s shares slipping 3.4% to $45.78.
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Meanwhile, the shares of bionic ear maker Cochlear fell as much as 26% after it recalled one of its leading products due to repeated failures.
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The market was troubled by fears that Greece would default on its vast debt. The resignation of Juergen Stark, the European Central Bank’s chief economist, on Friday also hit confidence.
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Following his exit, Stark called for widespread reform of the Eurozone, heightening fears that Europe was faced with further financial pain.
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IG Markets analyst Ben Potter said it looked like “an ugly start to the new week as European fears once again weigh on confidence and sentiment.”
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