Commodities tank as stock market sheds $41b in one morning

The Australian share market was slightly higher in early trade, with banks in positive territory but miners and energy stocks trading lower.

Yesterday’s $56 billion wipeout saw the benchmark index dive 3.8 per cent, putting it down 10 per cent for the September quarter and down 18 per cent from its April high-point.

“I don’t think listed resource companies in Australia are in for anything like a reversal of yesterday’s falls”, Mr Schuberg said. The Dow Jones Industrial Average rose 0.70 per cent on Friday, although the tech-rich Nasdaq fell one per cent.

This, combined with a solid U.S. session overnight led to a rally in the company’s shares and a lift in overall confidence, he said.

Among the big four banks, Commonwealth Bank added $1.88 to $72.03, Westpac gained 47 cents to $29.57, NAB was up 52 cents at $29.72 and ANZ lifted 51 cents to $26.89.

Oil Search fell 3.46 percent, Santos lost 9.13 percent while Woodside Petroleum slumped 5.82 percent.

THE Australian stock market has misplaced around usd41 zillion in fast negotiate, as BHP Billiton possesses tumble below usd22 for your first time frame ever since the worldwide financial disaster.

“The reason is simple – European and US share markets remain overvalued and investors are on the lookout for downside, rather than upside risks”, CommSec chief economist Craig James told Business Spectator.

The broader All Ordinaries index was up 21.7 points, or 0.43 per cent, at 5,098.40 points.

National turnover was 229 million securities worth $853 million.