PERTH: The Australian stocks followed Wall Street sharply lower at the open after widespread falls on international markets as speculation of a Federal Reserve rate rise boosted the US dollar.
US stocks closed 1.9 per cent lower overnight as the US dollar rose to a near 12-year high against the euro and bond yields in Europe hit record lows
At the 10.15am (AEDT) official market open, the benchmark S & P/ASX200 index fell 69.9 points, or 1.2 per cent, to 5,754.3 points, while the broader All Ordinaries index was slipped 68.6 points, or 1.18 per cent, to 5,725.7 points.
CMC chief market analyst Ric Spooner identified two drivers behind the US stock market sell-off in response to Friday’s jobs number.
“The first is valuations. Markets are positioning for the possibility of higher interest rates and many world stock markets go into this adjustment from a starting point of relatively high PE values making them vulnerable to a pull back,” he said.
