The Australian market is getting hammered again today, as energy stocks get smashed by falling oil prices.
LNG Limited was down more than 20 to $2.58, Santos weaker by almost 10% to $9.13, BHP down by 4.72% to $29.46 and Rio Tinto by almost 4% to $56.80.
“We’re seeing substantial sell off on all the resource stocks,” CMC chief markets analyst Ric Spooner said.
“At a headline level we’re seeing concern about weakening commodity prices but also looking at yield stocks being sold in our market.
“Investors are obviously concerned about the effect of falling commodity prices on the wider economy.”
Global oil prices fell 10% on Friday and have continued to fall, now below $65 a barrel.
The S&P/ASX 200 was down 1.9% to 5211.9 points.
Last week the market ended the week with most of its gains gone, again following the fall of oil prices.
The Nikkei, however, is having a stronger trading day, up 154.82 points or 0.89% a short time ago.
Locally, here’s how the S&P/ASX 200 has been tracking today:
With the ASX smashing through its November lows today, IG Market’s Chris Weston said it “looks undeniably bearish”.
“The massive underperformance against other developed markets through November in USD terms has been noted. The energy sector has lost a further 6.1% today and has dropped 27% since September 2,” he said.
The Aussie dollar is also getting smashed, hitting a four-and-a-half year low earlier today. While gold is also getting smoked down more than 4% to about $US1,143 an ounce.