ASX braces for Black Tuesday

ASX braces for Black Tuesday
Yesterday saw the worst day for the ASX since the GFC, with the day's end finishing at over 4.1% down at 5001.3 points, an all-time low for more than the last two years, reported the Australian Financial Review.

Investors should expect 'more pain' today, according to the article, as global markets experienced a selling frenzy overnight with US stocks joining selloffs in Europe and Asia, with the Standard & Poor's 500 Index falling toward its first correction in almost four years. 

"There is no doubt that the panic begets panic in this market," Michael Holland, chairman at Holland & Co, said in a Bloomberg Television interview. "Yet you called Black Friday, we certainly have Black Monday morning starting for us, so it's a psychological thing. It's pervasive. It's everywhere."
 

Major global downturn fears have no holding 
The Australian dollar continued its fall overnight, reaching a new six-year low as weaker commodity prices and a wave of selling hit global markets, according to an article in the Sydney Morning Herald.

The Australian dollar had closed out Monday afternoon at US72.3¢, having lost one US cent as a result of as the ASX had its worst day since the GFC and Chinese shares dropped 8.5 per cent.

Westpac market strategist Imre Speizer told the Sydney Morning Herald, "The Australian dollar's relationship with China assured it would follow any meltdown in Chinese equities - momentum is now clearly negative."

Capital Economics analysts told the newspaper, "The current panic is essentially 'made in China'. The recent data from other major economies have generally been good and there is little to justify fears of a major global downturn."