The Australian share market has fallen nearly two per cent to a seven-week low, wiping out $27 billion in value, amid concerns about US interest rates and the Brexit vote.
Investors dumped shares ahead of the US Federal Reserve’s latest interest rate decision later this week and Britain’s possible exit from the European Union next week, IG market strategist Evan Lucas said.
The market was also playing catch-up on Tuesday following a three-day long weekend, Mr Lucas said, noting the Asian market was “savaged” on Monday.
The benchmark S&P/ASX 200 index on Tuesday closed 2.06 per cent lower at 5,203.3, with all sectors closing in the red.
The local energy sector was the bigger loser as oil prices slipped below $US50 a barrel, with health care and financial stocks also dropping sharply.
Santos dropped 33 cents to $4.39, Oil Search fell 15 cents to $6.73 and Origin Energy lost 28 cents to $5.58.
Mining heavyweights BHP Billiton and Rio Tinto dropped 60 cents to $18.20 and 61 cents to $43.47, respectively.
Fortescue slipped nine cents to $3.13.
Within the banking sector, the Commonwealth Bank had the biggest decline, down $1.97 to $73.52.
Westpac fell 72 cents to $29.23, ANZ dropped 64 cents to $23.65 and National Australia Bank slipped 60 cents to $25.47.
Investment bank Macquarie Group lost $1.55 to $71.90.
Biopharma giant CSL dropped $3.74 to $111.33, while Mesoblast dropped 81 cents to $1.11 – a 42 per cent plunge – on concerns about the stem cell therapy firm’s future after drugs heavyweight Teva Pharmaceutical ended a long-standing research partnership.
Bucking the broader market trend, gold mining stocks lifted thanks to rising gold prices.
Newcrest Mining rose 25 cents to $22.55, while smaller rival Regis Resources gained 11 cents to $3.43.
KEY FACTS:
* At 1621 AEST on Tuesday, the benchmark S&P/ASX 200 index was down 109.3 points, or 2.06 per cent, at 5,203.3 points.
* The broader All Ordinaries index was down 109.0 points, or 2.02 per cent, at 5,282.5 points.
* The June share price index futures contract was down 57 points at 5,202 points, with 229,275 contracts traded.
* The spot price of gold in Sydney at 1700 AEST was $US1,279.94 per fine ounce, up $US14.44 from $US1,265.50 on Friday.
* National turnover was 2.93 billion securities traded, worth $6.12 billion.
