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AUSTRALIAN STOCKS SMASHED: Here's what you need to know

Roberto Serra/Iguana Press/Getty Images

The Australian market was crushed on the first trading day of September.

Here’s the scoreboard:

  • S&P ASX 200: 5,096.40 -110.58 -2.12%
  • All Ordinaries: 5,117.00 -105.08 -2.01%
  • AUD/USD: 0.7118 +0.0005 +0.08%

Overnight on Wall Street, the S&P 500 closed down 0.8%.

The local market fell hard in late trade, with all sectors turning red, adding to yesterday’s 1.07% loss and the 8.6% drop during August, the worst monthly fall since October 2008.

The ASX 200 has lost 3.18% in just two days trading.

The major banks all lost more than 2% today and the rest of the financial stocks followed them down. The ANZ was down 3% to $27.07 and the AMP lost 4.8% to $5.66.

The big miners were all weaker with BHP down 2.1% to $24.65 and Rio Tinto 1.8% to $49.37. Fortescue was down more than 6% to $1.79.

Energy stocks also dropped despite a rally in oil prices. Woodside lost almost 2% to $31.62.

Analysts have started resetting and downgrading targets the local equities market. Morgan Stanley has a 12 months forecast for the ASX 200 index of 5150 points, down from the previous estimate of 5650. Deutsche Bank is now looking at 5600 by the end of 2015. Its previous target was 6200.

The top stories for Tuesday:

1. This is Myer’s turnaround plan. Myer is raising $221 million in a rights issue to reduce debt after today posting a 21.35% fall in profit to $77.5 million for the full year.

2. Cut two executives, save $1 million. Atlas Iron, fighting to cut costs to meet falling prices for iron ore, says it will save from a series of executive changes.

3. Discount supermarket group Aldi is intensifying its attack on big players Woolworths and Coles by increasing the number of stores it plans to open. Woolworths shares were down 3% to $25.57.

4. Wollongong Coal is shutting its last remaining colliery, cutting 80 jobs, as it awaits expansion approval.

5. Suddenly, Australia’s economic outlook is grim.

6. As expected by economists and financial markets alike, the RBA has left interest rates unchanged at 2.00% in September.

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