Forget the election – it is the US economy’s sub-prime woes that have caught the attention of Australian markets today, driving the S&P/ASX200 1.7% lower on yesterday’s close to 6559.1 by 12.25pm.
Although the fall has yet to undo the full extent of yesterday’s 2.24% gain, it serves as a renewed reminder that significant concerns remain about the possible future impact of the sub-prime meltdown in the US.
Pessimism about the exposure of the US’s biggest banks to huge losses as the sub-prime mortgage default rate continues to grow drove the US Dow Jones index 0.89% lower overnight.
This, in turn, spooked holders of Australian financial stocks, with shares in Macquarie Bank and NAB both falling by over 2% in this morning’s trading.
The Australian dollar has also lost value this morning, falling from US88.33c at last night’s Sydney close to US87.22c at 12.30pm today.
You can help us (and help yourself)
Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.