Despite the return of relative stability to Chinese markets, Australian stocks have fallen heavily on Tuesday with losses accelerating into the close.
First, the final scorecard.
- ASX 200 5184.4000 , -86.08 , -1.63%
- All Ords 5239.2 , -83.59 , -1.57%
- AUD/USD 0.7205 , 0.0017 , 0.24%
As the 5-minute chart shows, apart from a brief blip higher upon the resumption of trade in Chinese markets, it was nothing but one-way traffic for the index in the latter parts of the session.
At 1.63%, the loss was the largest in percentage terms since December 14 last year.
Aside from the gold producers which finished up 2% on the back of safe haven demand, all sectors finished deep in the red.
Losses were led by the energy and healthcare sectors, down more than 2%, while financials – the largest component of the broader ASX 200 index by market weight – slid by 1.5%.
Only consumer discretionary managed to post losses of less than 1%, a tough session in anyone’s language.
Here’s the top stories from Tuesday.
1. It looks like the end of the line for Dick Smith with the electronics retailer being placed into voluntary administration this morning. Only two years ago the company listed at $2.20 a share.
2. Here’s why Bank of America-Merrill Lynch believes recent volatility in Chinese markets may be a sign of things to come in 2016.
3. Australians are buying more of Mercedes’ new AMG sports cars per capita than anyone else. Who said the economy was struggling?
4. Here are more signs Australians spent up big over Christmas. Perceptions towards current household finances have never been higher, at least since 2008.
5. Global manufacturing was sputtering at the end of 2015, led by continued weakness in emerging economies, particularly China.