Australian stocks slip to 8-year low as S&P 500 futures hit limit down


  • Investors shun risk in Asia on global recession fears. 
  • Australian stocks tumble to multi-year lows with the US stock futures falling by 5%. 

Stock markets are again bleeding with investors seeking shelter in cash amid mounting fears of a coronavirus-led global recession. 

Australia's benchmark equity index S&P/ASX 200 fell to A$ 4,413 early Monday to hit the lowest level in eight years. The index is currently reporting a 7% drop. 

Meanwhile, the futures tied to the S&P 500 are down 4.3%. The US stock futures fell 5% in early Asia, triggering a "limit down" - the maximum percentage decline possible in one trading day - as the number of virus-related deaths surged over the weekend and a congressional rescue package hit a procedural roadblock in the Senate on Sunday,

Analysts at Goldman Sachs Group Inc. said last week they expect the US economic output to drop 24% in the second quarter, one of the worst readings on record, according to Wall Street Journal. 

Central banks from New Zealand to Canada have announced stimulus measures over the last couple of weeks to counter the coronavirus-led slowdown in their respective economies. So far, however, the massive liquidity injections and rate cuts have failed to put a floor under the equity markets. 

Investors are even selling traditional safe havens like gold and rotating money into US dollars, the global reserve currency. At press time, the dollar index, which tracks the value of the greenback against majors is hovering above 102.50, representing a 4.6% gain on a month-to-date basis. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures