With stock markets around the world following the lead from Asia yesterday, you could be forgiven for thinking that the ASX, fresh from a 4.09% and $68 billion wipeout yesterday, might have already factored in the worst of the global market rout.
Not so, according to overnight futures markets, which currently have the SPI 200 September futures contract down more than 200 points and looking pressured again today.
Key to the move, beside European and US stock weakness, seems to be another big fall in energy prices. Nymex crude is trading down 6% at $38.14, copper and base metals are weaker, iron ore is plummeting and proximity to the fulcrum of this market mess, Asia, doesn’t help.
Here’s the chart of the overnight action at 5.50am.