Australian Stocks Fall in Tandem with China

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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza