Australian stocks tank: ASX falls through 5000

Photo: Getty Images.

The Australian market fell hard and fast.

The big miners were smashed, losing 5%, and the major banks followed, weaker by about 2%.

A short time ago, the ASX 200 index was below the key support level of 5000, at 4,985.30, down 159.81 points 3.11%.

Investors were reacting to a brutal session on Wall Street where the S&P 500 closed down 2.6% follow concerns about the timing of interest rate rises and how China’s slipping economy might impact this.

Traders were also concerned about the miners after a heavy falls overnight in London with Glencore losing about 30%.

Chris Weston, chief market strategist at IG, says no-one’s buying in this market.

“These are dark forces at play and there have been for a while,” he says.

“If anyone’s learnt any lessons through the GFC, then this is a repeat. We’ve broken through the bottom end of the range, the trend is lower and it’s about capital preservation.

“When you see all these signs, and you generally don’t know what’s causing it, just go to cash. And I think that’s just what people have done in the US.”

On the local market, all ten sectors dropped into the red.

The ANZ lost 2.46% to $26.72 and Westpac 2.4% to $29.48.

BHP was down almost 6% to $21.77 and Rio Tinto 4.49% to $46.56.

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