Australian financial stocks are officially in a correction

Paul Kane/Getty Images

The ASX 200 closed at its lowest level since January 28 today.

Since nearly breaching the 6,000 point level on March 1 the index has now fallen 6.2%.

ASX 200 Daily Chart

The chief catalyst behind the recent decline has been the performance of its largest sector — financials.

Since hitting a multi-year peak on March 18 the ASX 200 financials index (XFJ) has now fallen 11.4%, larger than the 10% decline that defines a technical correction.

ASX 200 Financials Index

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