The share market is more than 2.5 per cent weaker as the reaction to the US Federal Reserve’s decision to keep rates on hold turns sour.
While the local market rose on Friday after the Fed’s rate call, Wall Street and European markets plunged in their next sessions, setting a negative tone for local investors on Monday.
Analysts have said the decision not to raise rates implied the challenges facing the global economy are stronger than thought, and that has sparked the global equity sell-off.
All sectors of the local market were weaker after the morning’s trade, with the big four banks all around three per cent lower, and BHP Billiton and Rio Tinto both down more than three per cent.
If the falls are sustained in afternoon trade, it will be worst session for the market since August 24.
KEY FACTS
* At 1215 AEST on Monday, the benchmark S&P/ASX200 index was down 132.9 points, or 2.57 per cent, at 5,038.8 points.
* The broader All Ordinaries index was down 124.2 points, or 2.39 per cent, at 5,070.1 points.
* The December share price index futures contract was 130 points lower at 5,018 points, with 23,503 contracts traded.
* National turnover was 803 million securities worth $2.03 billion.
