Nasdaq enters ‘bear territory’
With the US markets edging lower and arguably falling into bear territory, the ASX is poised to follow the trend and expected to fall at the open. The Australian dollar fell 1 per cent and ASX futures were down 40 points on Saturday. All eyes seem to be on that of the recent interest rates increases and the prospect of slower global growth. US/China trade war, hawkish fed, the Mueller investigation closing in on trump, all seem to be fuelling that of the negative sentiment that is plaguing investors.
With Fridays losses, the NASDAQ has fallen 20 per cent since its August highs marking ‘official’ bear territory for the index. Adding to the volatility was “quadruple-witching”, which is a term used when options on stocks and ETF’s as well as futures expire. Trading volume reached as high as 16.18 billion shares, its highest level in nearly 2 and a half years.
Aussie shares finished the week at a fresh 2 year low finishing the trading day Friday at 5467, with the consistent losses this almost certainly rules out the possibility of a Santa Claus rally marking the worst December quarter since 2008. Bank shares fell below their 5 year lows with ANZ shares falling a further 6 per cent to $23.30 and Westpac down 4.2 per cent to $23.83. Macquarie shares also closed the week lower, down 7.4 per cent to $104.82