Shares around the world have fallen on concern about blocks to US law changes. Photo / AP
Shares around the world have fallen on concern about blocks to US law changes. Photo / AP
Almost A$30 billion (NZ$32.6b) has been wiped from the value of the Australian share market as concerns about delays to US President Donald Trump's healthcare and tax reforms rattled Wall Street and markets around the world.
The benchmark S&P/ASX200 index dropped 1.6 per cent, its sharpest one day fall sinceNovember 9, with the big banks and miners among the worst performers.
Shaw and Partners senior private client adviser Craig Sidney said the market followed a negative lead from Wall Street, where the Dow Jones Industrial Average dropped more than one per cent overnight as investors took profits amid worries about the delivery of President Trump's promised tax and healthcare changes.
Investors view the Trump administration's struggles to push its Obamacare overhaul through Congress as a bad omen for the new president's promised tax cuts.
In Australia, the big four banks all fell more than 1.5 per cent, with ANZ the weakest, dropping 2.6 per cent.
Miners posted larger falls, as iron ore prices took a hit. Rio Tinto shed 2.6 per cent, BHP Billiton dropped 2.9 per cent and Fortescue Metals lost 5.3 per cent.
"Iron ore was down over four per cent last night and down another one per cent in Asia, so that's putting some downward pressure on Fortescue, BHP and Rio," Sidney said.
"Likewise, you've got oil down 0.9 per cent overnight and today down another 0.6 per cent, so that's putting pressure on the likes of Santos, Oil Search, Woodside and Origin."
Santos was the hardest-hit among the energy producers, dropping 2.7 per cent.
The Australian dollar fell during Wednesday trading, remaining below US 77 cents, hit by the Wall Street sell-off amid concerns about the global outlook and at 1700 AEDT was trading at 76.6 US cents.
Shares fell in Asia yesterday, with Tokyo tumbling more than 2 percent and Hong Kong's Hang Seng index dropping 1.4 per cent.
In New Zealand the impact was muted.
The S&P/NZX 50 Index dropped 24.71 points, or 0.3 percent, to 7,060.83. Within the index, 30 stocks fell, 12 rose and eight were unchanged. Turnover was $171 million.
