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Australia Market tumbles on global sell-off

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Headline indices of the market stumbled on Thursday, 11 October 2018, as risk aversion selloff triggered on tracking negative lead from Wall Street overnight which fell amid fear of rising U. S. interest rates, ongoing trade friction between the U. S. and China, and worries over global growth. All ASX issues declined, with shares in technology, materials, energy, consumer discretionary, and financials being notable losers. Around late afternoon, the benchmark S&P/ASX200 index tumbled 139.81 points, or 2.31%, at 5,910 points, while the broader All Ordinaries index dropped 145.18 points, or 2.36%, to 6,018.60 points.

Wall Street tumbled on Wednesday, with the and the Dow marking their biggest daily declines since Feb. 8 as markets were spooked by the prospect of rising interest rates. The fall was driven by a rise in U. S. long-dated Treasury yields, which reinforced expectations of several interest rate hikes over the next 12 months and prompted investors to reassess equity valuations. Over the past few months, an intensifying trade war between the and has also hit risk assets on worries about global growth.

Shares of players were down after fell more than 2% overnight.

WTI crude for November delivery tumbled $1.79 or 2.4% to $73.17 a barrel on the Mercantile Exchange. Woodside Petroleum, Oil Search, and fell in a range of 2% to 4%.

Shares of materials companies were lower amid concerned about China's slowing and fell in a range of 2% to 3%.

Shares of banks and financial players were also under pressure, with Commonwealth Bank of down 2% as its faced intense questioning from parliamentarians over the banks' governance failures. Westpac Banking Corp's shares fell as much as 2.3% as its is scheduled to appear before the parliamentary inquiry later in the day. and Bank were lower in a range of 1.2% to 1.8%.

Telco giant was down 1.4% after it apologised to shareholders for a lack of clarity about how it calculates executive bonuses, acknowledging that some investors still feel they are too high despite a 30% cut.

CURRENCY: Australian Dollar was higher against greenback and other major currencies on Thursday. The Australian dollar was quoted at $0.7065, up from $0.7013 on Wednesday.

OFFSHORE MARKET NEWS, US tumbled on Wednesday. Rising bond yields and lingering worries over the trade dispute between the US and were the main factors driving down share prices. Many investors sold shares in because higher US long-term interest rates raise companies' borrowing costs, eroding their corporate earnings. The plunged 831.83 points or 3.2% to 25,598.74, the Nasdaq plummeted 315.97 points or 4.1% to 7,422.05 and the tumbled 94.66 points or 3.3% to 2,785.68.

The major European markets ended lower on Wednesday. The U. K.'s Index slumped by 1.3%, while the French Index and the German DAX Index plummeted by 2.1% and 2.2%, respectively.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 09:42 IST