Markets tumble on US speculation
Traders on theAustralian Stock Exchange(ASX) appear to be apprehensive about the re-opening of the New York Stock Exchange in less than 12 hours, and have dumped more than 151 points worth of stock, or around 5 per cent, at the half way mark of trading.
The write off locally has come about despite a resolve by the US financial community to abstain from panic selling and amidst rumours that US Federal Reserve treasurer Alan Greenspan will pre-empt the opening of trade in New York with a cut to interest rates.
Investors have dumped blue chip stocks, with media giant News Corp having 7 per cent of its value wiped because of speculation its value on Wall Street will be traded off when the Dow begins trading again late tonight, local time.
Banks have also been heavily sold off, withNational Australia Bank(NAB) losing $1.53 as at 1.30pm. The NAB price may also be affected by news that it had an exposure to failed airline Ansett of up to $100 million.
Commonwealthhas had a similar devaluing of its shareprice and trades at $1.45, down almost 7 per cent, while ANZ has lost $0.26 or 4 per cent.St Georgehas slid 6 per cent below its opening price of $14.29, but may also be affected by news of the shock death of managing director Edward O’Neal on the weekend.
Financial services giantAMPhas also been hit by the wave of nervousness spreading through the stock exchange, with its stock down $0.85, or just under 6. 5 per cent.
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