The market is down 190 at midday – was down 217 at worst. The SFE Futures predicted a 266 point fall in the market this morning. Property and financials down 4.5% each. Resources underperforming – down 5.4% after finishing up 2.9% yesterday on the back of the RBA-rates-cut-induced 220 point rally.
It couldn't last.
Boom electronics retailer JB Hi-Fi Ltd had a day of wide trading swings yesterday brought about by the early market sell-down, then by a trading update which allowed it to ride the late market surge.
Shares in building and engineering services provider Norfolk Group plunged 21% yesterday after the company joined the slowing gathering pack of groups downgrading their 2009 earnings.
According to Bloomberg' yesterday, New Zealand businesses grew less pessimistic about the economic outlook after the central bank slashed interest rates by the most in seven years.
The Australia share market has fallen sharply with 3pc in minutes of the start of trading this morning, after Wall St tumbled overnight. The benchmark S&P/ASX200 index was down as much as 3.3%, or 148.5 points, to 4391.9 in early trading.
The market having another shocker down 96 or 2% – but improving. It was down 149 at worst. Not the worst result considering the SFE futures suggested a 178 point drop this morning. All sectors down. Financials and Property Trusts down 1.7%. Industrials down 2.9% and Resources down 3.6% on the back of metals prices falling over in London overnight and concern that demand will be affected by a US recession. Economists predict a interest rate cut of 50bps by the RBA this afternoon – the decision is due 2:30pm. One economist says there is a chance that rates may be cut by more than 50bps because lending rates has fast become the RBA's policy priority.
