Overnight on Wall Street the Dow plunged 832 points or 3.15 per cent, its biggest loss since February. Worse, the Nasdaq sank 4.1 per cent, it’s worst showing for seven years. The ASX 200 plunged below 6,000 at the open
Investors continued to be spooked by rising interest rates, and the relative attractiveness of so-called risk-free bond yields of 3.2 per cent versus equities.
Adding to investor’s concerns was the International Monetary Fund (IMF) cutting its global growth forecasts citing trade tensions between the US and its trading partners, otherwise known as Trump’s Tariffs.
The IMF says the global economy is now expected to grow at 3.7 per cent this year and next year, 0.2 percentage points from an earlier forecast.