Emerging Technology

Election over, market falls on more sub-prime woes: Economy round-up

SmartCompany /

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.

Advertisement
SmartCompany

SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.

We Recommend

FROM AROUND THE WEB