Fresh from logging its largest percentage decline to start the year in decades, the rout on the ASX has accelerated this morning, extending the markets losses into a seventh consecutive session.
First, the scoreboard after 90 minutes of trade.
- ASX 200 4901.2000 , -89.64 , -1.80%
- All Ords 4961.2 , -88.21 , -1.75%
- AUD/USD 0.6942 , -0.0009 , -0.13%
The benchmark ASX 200 has fallen 1.80%, extending this year’s decline to 7.45%. The index briefly fell as low as 4,880.1, taking it back to levels last seen since July 2013.
Should the ASX 200 close today’s session lower, it will mark the longest stretch of losses seen since June 2010.
Yes, the ugly records are coming thick-and fast to start the trading week.
As the table by sector reveals below, the losses have been broad-based in nature. Materials, down by more than 3%, is currently leading the market lower. Only the All Ords gold index is higher, buoyed by continued safe haven buying.
- A-REITS -1.17%
- CONSUMER DISCRETIONARY -1.52%
- CONSUMER STAPLES -1.15%
- ENERGY -2.67%
- FINANCIALS -1.71%
- HEALTHCARE -1.10%
- INDUSTRIALS -2.00%
- INFORMATION TECHNOLOGY -0.77%
- MATERIALS -3.04%
- TELECOMMUNICATIONS -0.79%
- UTILITIES -1.46%
- ALL ORDS GOLD INDEX 1.72%
Fitting with the theme seen in recent sessions, the resumption of trade in Chinese markets will likely dictate the performance of Australian stocks in the latter parts of trade.
At 12.15pm AEDT, the PBOC will announce Monday’s USD/CNY fixing level. The pair closed Friday trade at 6.5932, higher than Friday’s fix of 6.5636.
It was the weakest closing level since February 2011, and suggests that yuan may be fixed significantly weaker today.
Beyond the fix, the resumption of trade in Chinese stocks will also be influential. They gained around 2% last Friday, helping to trim the weekly loss to only 10%.
While that late flurry helped to ease some concerns across Asian trade, it was likely assisted by indirect government buying from China’s so-called “national team”, ensuring concerns around the stock market remain elevated.