The ASX200 has closed down 1.86% after a volatile start to the financial year.
The index fell 89.9 points to 4744.1, wiping out much of yesterday’s 123.7-point gain.
Retail sales figures released this afternoon missed market expectations, while new PMI data from China suggested that growth was slowing.
Quantitative analyst Adam Maxey of iQuant Systems said today’s volatility was exacerbated by algorithmic traders that are estimated to account for 20-30% of trading volumes.
iQuant Systems identified six trigger points that Maxey said prompted algorithmic traders to switch from the buy to sell side and vice versa today:
Maxey expects another volatile day of trading tomorrow, adding that and another 100-point movement in the ASX200 cannot be ruled out.
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