The Australian market traded lower from the get-go, following the weak leads from international markets. No sector was spared, with the materials, energy and financial sectors all down about 3%. The commentary from the Federal Reserve last week have truly shaken investors outlook on the economic health of the world economy.
Trading screens were a sea of red with only the Shanghai index going against the grain, pointing up about 0.5%. Even the recent bout of overseas interest looking to takeover prominent Australian companies, possibly motivated by the lower Australian Dollar, was not enough to buoy the share market. What is puzzling traders today is the fact that China, which is thought to be the driver of the global slowdown, is in fact up, while the rest of the region is down. When investors can’t make sense of what is going on, many would rather stay out.
The PMI numbers out of China and Europe on Wednesday may give more direction to the market and hopefully give traders the tools to take positions during this uncertain market.