Australia Got Clobbered This Week

One of the big stories in global markets this year is the commodity decline.

And this week we got clear evidence of Chinese slowing.

These two closely-related stories have conspired to slam the Australian dollar, which is levered to both commodities and China.

Since the beginning of April, it’s been getting clobbered. (Via FinViz)

FinVizMeanwhile, Aussie stocks also took it on the chin this week.

From the Sydney Morning Herald:

Australian shares reversed early gains to post another big sell-off as faltering banks and market volatility around the region hit investor sentiment.

The benchmark S&P/ASX200 index fell 76.5 points, or 1.5 per cent, to 4964.3, ending below 5000 points for the first time since April 22. The broader All Ords slumped 78.9 points, or 1.6 per cent, to 4983.5.

The ASX shed 3.8 per cent over the week, its biggest weekly loss in 18 months.

Today’s drop wiped another $23 billion off the market’s value, adding to yesterday’s $30 billion drop.

Australia has been famously resilient over the years, in part thanks to China’s amazing growth.

The durability of the economy is being tested.

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