Australian stocks are sinking

Australian stocks dropped hard in early trade.

Assets are selling off on global markets after signs that the Fed is open to rising interest rates in September.

Fifteen minutes into the start of trade, the ASX200 was down 1.4%. The market started gaining ground about 11.15 am (AEST) when futures showed Shanghai stronger but fell again when China opened lower.

But prices started falling again and a short time ago, the ASX 200 was down 1.95%.

The major banks and the big resources companies were all weaker. All ten sectors were in the red.

The ANZ was down 2.94% to $27.69 and BHP had lost 2.47% to $24.86.

The one bright spot was iron ore stocks which rallied after ore prices jumped 3.9%. Atlas Iron was up 3.8% to $0.027.

Woolworths was down 4% to $26.28 after posting a weak profit result on Friday.

Wealth management and home lender Yellow Brick Road was up more than 4% to $0.47 after announcing an improved full year loss of $2.55 million. Underlying profit was $1.27 million.

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