ASX suffers worst one-day rout in two years as global stocks slide
Australia's benchmark index dives more than 3%, wiping $53 billion off local stocks
Falls come amid a sell-off on Wall Street and in Europe, triggered by a combination of concerns, including rising bond yields, the war in Ukraine, and Covid-19 lockdowns in China.
The Australian share market has suffered its worst one-day rout in two years, as global stocks tumbled on a souring economic outlook.
The benchmark S&P/ASX 200 index plunged 3.2 per cent, or 221 points, to 6772.2 on Monday - its biggest one-day fall since June 2020.
The local bourse's losses tracked a steep sell-off on Wall Street on Friday, which saw the Dow Jones Industrial Average sink 2.8 per cent and the Nasdaq lose 3.6 per cent.
European markets also fell sharply on Monday, with the FTSE 100 in London down 1.8 per cent, the DAX in Frankfurt losing 2.3 per cent and the CAC 40 in Paris shedding 2.5 per cent.
The sell-off was triggered by a combination of factors, including rising bond yields, the war in Ukraine, and Covid-19 lockdowns in China.
Rising bond yields are a particular concern for investors, as they can make it more expensive for companies to borrow money and can also lead to higher mortgage rates for consumers.
The war in Ukraine is also weighing on investor sentiment, as it has led to uncertainty and volatility in the global economy.
And the Covid-19 lockdowns in China are raising concerns about the impact on global supply chains and economic growth.
The sell-off on Monday wiped $53 billion off the value of Australian shares, with all sectors in the red.
The biggest losers were the technology and healthcare sectors, which fell 4.5 per cent and 3.7 per cent respectively.
The mining sector also fell sharply, losing 3.2 per cent, as the price of iron ore and other commodities declined.
The only sector to rise on Monday was the utilities sector, which gained 0.3 per cent.
The sell-off on Monday is a reminder of the risks involved in investing in the share market.
While the market has been on a strong run in recent months, there are always risks that can lead to sudden and sharp falls.
Investors should be aware of these risks and should diversify their portfolios accordingly.
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