Sharemarket wipes $23 billion in value: Afternoon market insights

The ASX200 dipped below 4000 basis points today, hitting its lowest level since November as it chased plummeting global bourses.

The ASX200 lost 1.85% to 3988.8, while the broader All Ordinaries index gave up 1.93% to 4037.4, remaining just above the psychologically significant 4000 mark.

“When it rains bad news it pours, and last week financial markets were flooded with negativity,” said senior trader at CMC markets Tim Waterer.

“There was nothing indecisive about the reaction of risk assets, with the sharp move lower being a direct response to the absence of any positivity with regards to economic indicators.”

The Australian dollar dropped today, buying 96.54 US cents, a level Waterer thinks it could stabilise at.

“The prospect of further stimulus from the US is the only thing that has prevented the AUD falling further than it has,” he said. “With the RBA poised to wield the axe on interest rates over coming months, if easing measures are also taken by the Federal Reserve this may offset the yield implications for the AUD and support it around the current levels.”