Australian stocks recover from early losses

The Minumurra River floods farm land and a car is stranded at Jamberoo, NSW. Mark Nolan/Getty Images

Australian stocks sank fast in early trade following more falls on Wall Street overnight.

The banks lost ground. Westpac was down 2.2% but recovered to be $31.27, up 1.2%.

The big miners opened lower but then recovered. Rio Tinto was 0.72% stronger at $48.80 and BHP was up 1.95% to $23.79.

In the US, an early strong rally reversed with the S&P 500 ending the down down 1.35%. But European markets jumped higher with Germany’s Dax up 5% and the FTSE in the UK stronger by 3.1%.

In China, the central bank cut its lending rate again, this time by 0.25% to 4.6%. This is the fifth time since November that the The People’s Bank of China has cut rates.

On the local market, half the ten sectors were weaker, the other half higher, following yesterday’s 2.72% gain and Monday’s massive 4.09% loss.

The ASX 200 quickly fell 1.6% before heading back up to be almost flat. It dipped again when China markets slipped lower, and rallied higher into positive territory in late afternoon trade.

Seven Group, which today reported a full year loss of $359.1 million, was down 0.64% to $4.63.

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