It was a bad day on the Australian Stock Exchange today with the S&P ASX 200 falling 88.2 points, or almost 1.7%, to close at at 5,218.9.
It’s the largest daily fall in almost two months.
Most of the damage was done this morning as the market opened and weakness in Japan and through out Asia but the weakness in the HSBC manufacturing PMI which only two weeks ago printed 51.2 as a preliminary number but printed just 50.2 as the official number was released in China around lunchtime today.
It all contributed to a weak afternoon’s trading.
Chris Weston from IG told Business Insider it wasn’t so much a case of any big selling on the local market, but more that all the uncertainty around with the US debt debate, political troubles in Italy and Austria over the weekend, and the enduring troubles of Greece led to investors simply being cautious and not buying.
Weston said: “It’s not hard to move a market when the buyers are sidelined or with US futures indicating a weak open later tonight.”
The break of trendline support had to happen sooner or later, Weston said, but technical indicators suggested even with the uncertainty that buyers would still be waiting in the wings on any weakness.
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