Trump concerns send stocks tumbling

Trump concerns send stocks tumbling

US President Donald Trump’s healthcare and tax reform delays have shaken Wall Street and finance markets around the globe. 9Finance have reported that almost $30 billion has been wiped from the value of the Australian share market.

More from 9Finance:

The benchmark S&P/ASX200 index dropped 1.6 per cent, its sharpest one-day fall since November 9, with the big banks and miners among the worst performers.

Shaw and Partners senior private client adviser Craig Sidney said the market followed a negative lead from Wall Street, where the Dow Jones Industrial Average dropped more than one per cent overnight as investors took profits amid worries about the delivery of President Trump’s promised tax and healthcare changes.

Investors view the Trump administration’s struggles to push its Obamacare overhaul through Congress as a bad omen for the new president’s promised tax cuts.

Locally, the big four banks all fell more than 1.5 per cent, with ANZ the weakest, dropping 2.6 per cent.

Miners posted larger falls, as iron ore prices took a hit.

Rio Tinto shed 2.6 per cent, BHP Billiton dropped 2.9 per cent and Fortescue Metals lost 5.3 per cent.

“Iron ore was down over four per cent last night and down another one per cent in Asia, so that’s putting some downward pressure on Fortescue, BHP and Rio,” Mr Sidney said.

“Likewise, you’ve got oil down 0.9 per cent overnight and today down another 0.6 per cent, so that’s putting pressure on the likes of Santos, Oil Search, Woodside and Origin.”

Santos was the hardest-hit among the energy producers, dropping 2.7 per cent.

The Australian dollar fell during Wednesday trading, remaining below US 77 cents, hit by the Wall Street sell-off amid concerns about the global outlook and at 1700 AEDT was trading at 76.6 US cents.

The spot gold price rose by US $16.50 as sentiment towards equities turned negative.


* The benchmark S&P/ASX200 was down 90.1 points, or 1.56 per cent, at 5,684.5 points.

* The broader All Ordinaries index was down 87.5 points or 1.5 per cent, at 5,732 points.

* The June SPI200 futures contract was down 89 points, or 1.55 per cent, at 5,669 points.

* National turnover was 2.9 billion securities traded worth $6 billion.


One Australian dollar buys:

* 76.6 US cents, from 77.02 on Tuesday

* 85.455 Japanese yen, from 86.88 yen

* 70.92 euro cents, from 71.58 euro cents

* 61.42 British pence, from 62.37 pence

* 108.88 New Zealand cents, from 109.50 NZ cents


The spot price of gold in Sydney at 1700 AEDT was $US1,245.10 per fine ounce, up $US16.5 from $US1,228.6 per fine ounce on Tuesday.




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