The Australian sharemarket has tumbled 1.5 per cent after negotiations between Greece and its creditors faltered overnight, extending yesterday’s active selling which saw the bourse drop 1 per cent.
The losses on the local market outstripped weakness in offshore trade, with Wall Street stocks dipping less than half a percentage point.
IG chief market strategist Chris Weston said it was “one giant step forward, two small steps back” in the Greek talks overnight.
“Confusion seems the order of the day… the fact is few really know what’s going on in the Greek debt negotiations,” he said.
At 12.05pm (AEST), the benchmark S&P/ASX200 index retreated 80.6 points, or 1.43 per cent, to 5,552.1, while the broader All Ordinaries index gave up 78.2 points, or 1.39 per cent, to 5,541.7.
Rivkin chief executive Scott Schuberg said heavy weakness in the Chinese markets also local gave investors a fright.
“Chinese markets gapped lower on the open this morning and gave our market a pretty nasty surprise,” Mr Schuberg said, with the CSI 300 index dropping to 4,573 points at the open after a close over 4,700.
“The index has risen 118 per cent in the last 12 months — you can understand why traders are spooked as it comes off, there will be some retail investor panic as leveraged traders leapfrog each other to get out,” he said.
Mining stocks were plummeting today, after the price of iron ore resumed its losing run after a brief pause. The commodity has weakened in nine of the last 10 sessions, as oversupply fears threaten to push iron ore below $US60 a tonne for the first time in a month.
Materials were down 2.38 per cent.
BHP Billiton lost 3.26 per cent to $27.58, while rival Rio Tinto was 2.37 per cent softer at $54.31.
Fortescue Metals gave up 4.25 per cent to $2.03, while South32 fell 3.11 per cent to $1.87.
The financial sector fell 1.37 per cent.
ANZ lost 0.93 per cent to $33.13, while Commonwealth Bank was down 0.8 per cent to $86.59.
National Australia Bank gave up 1.22 per cent to $34.03, while Westpac retreated 1.35 per cent to $32.86.
Consumer staples were the only bright spot on the market, up 1.38 per cent as Woolworths defied the gravity of the market.
Woolworths surged 5.57 per cent to $27.85, after The Australian reported KKR was putting together a bid for the troubled supermarket giant.
Meanwhile Wesfarmers lost 0.6 per cent to $39.67.
Energy shares fell heavily, down 2.61 per cent.
Oil Search was down 2.01 per cent to $7.30, while Santos retreated 1.58 per cent to $8.09.
Woodside Petroleum dropped 1.51 per cent to $35.14, while Beach Energy lost 1.42 per cent to $1.045.
Meanwhile, Qantas retreated 1.7 per cent to $3.185, and Telstra gave up 1.27 per cent to $6.21.
On Thursday, the local market fell almost 1 per cent after Greek Prime Minister Alexis Tsipras criticised the IMF for rejecting his reform proposals.
The benchmark S&P/ASX200 index was down 54.1 points, or 0.95 per cent, to 5,632.7 points, while the broader All Ordinaries index was down 52.8 points, or 0.93 per cent, to 5,619.9 points.
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The Australian sharemarket has tumbled 1.5 per cent after negotiations between Greece and its creditors faltered overnight, extending yesterday’s active selling which saw the bourse drop 1 per cent.
The losses on the local market outstripped weakness in offshore trade, with Wall Street stocks dipping less than half a percentage point.
IG chief market strategist Chris Weston said it was “one giant step forward, two small steps back” in the Greek talks overnight.
“Confusion seems the order of the day… the fact is few really know what’s going on in the Greek debt negotiations,” he said.
At 12.05pm (AEST), the benchmark S&P/ASX200 index retreated 80.6 points, or 1.43 per cent, to 5,552.1, while the broader All Ordinaries index gave up 78.2 points, or 1.39 per cent, to 5,541.7.
Rivkin chief executive Scott Schuberg said heavy weakness in the Chinese markets also local gave investors a fright.
“Chinese markets gapped lower on the open this morning and gave our market a pretty nasty surprise,” Mr Schuberg said, with the CSI 300 index dropping to 4,573 points at the open after a close over 4,700.
“The index has risen 118 per cent in the last 12 months — you can understand why traders are spooked as it comes off, there will be some retail investor panic as leveraged traders leapfrog each other to get out,” he said.
Mining stocks were plummeting today, after the price of iron ore resumed its losing run after a brief pause. The commodity has weakened in nine of the last 10 sessions, as oversupply fears threaten to push iron ore below $US60 a tonne for the first time in a month.
Materials were down 2.38 per cent.
BHP Billiton lost 3.26 per cent to $27.58, while rival Rio Tinto was 2.37 per cent softer at $54.31.
Fortescue Metals gave up 4.25 per cent to $2.03, while South32 fell 3.11 per cent to $1.87.
The financial sector fell 1.37 per cent.
ANZ lost 0.93 per cent to $33.13, while Commonwealth Bank was down 0.8 per cent to $86.59.
National Australia Bank gave up 1.22 per cent to $34.03, while Westpac retreated 1.35 per cent to $32.86.
Consumer staples were the only bright spot on the market, up 1.38 per cent as Woolworths defied the gravity of the market.
Woolworths surged 5.57 per cent to $27.85, after The Australian reported KKR was putting together a bid for the troubled supermarket giant.
Meanwhile Wesfarmers lost 0.6 per cent to $39.67.
Energy shares fell heavily, down 2.61 per cent.
Oil Search was down 2.01 per cent to $7.30, while Santos retreated 1.58 per cent to $8.09.
Woodside Petroleum dropped 1.51 per cent to $35.14, while Beach Energy lost 1.42 per cent to $1.045.
Meanwhile, Qantas retreated 1.7 per cent to $3.185, and Telstra gave up 1.27 per cent to $6.21.
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