Big falls in commodity prices and more turmoil on Shanghai’s stock market have pushed Australian shares deep into the red.
Australia’s benchmark indices were over 1% lower at noon after Shanghai tumbled 5% in early trade, prompting the Chinese government to intervene once more to try and limit selling.
Bloomberg News reported that trading had been halted in more than a third of companies trading on the Shanghai and Shenzhen stock markets after hundreds of companies requested suspensions.
The moves came after iron ore prices tumbled another 4.6% overnight to be below $50 a tonne. Nickel also fell 9% and copper hit a six-year low.
The heavy falls on Wednesday came after the Australian stock market enjoyed its best gains in nearly five months during the previous session as investors waited for the next development in the Greek financial crisis.
via The Guardian