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By midday, both major Australian indices had lost more then 1-and-a-half per cent, with the benchmark S&P/ASX200 index falling 84 points, while the All Ordinaries dropped 80.
US shares tumbled more than two per cent on Wednesday as renewed financial sector worries gripped the market, and investment giant Merrill Lynch plunged on a possible downgrade.
The Dow Jones Industrial Average closed down 236 points, while the Nasdaq composite fell 59.
In Asian trading today, Japan’s Nikkei was down 12 points at midday, while Hong Kong’s Hang Seng fell 243.
Meanwhile in company news on the ASX this morning, Australian conglomerate CSR saw its shares fall more then 15 per cent on a lower then expected earnings forecast.
CSR predicted a rise in earnings-before-interest-and-tax of more than five per cent this fiscal year – well shy of analysts’ expectations of a 14 per cent gain. The company said that while it expected growth in its building products and sugar units, it faced challenges from a softer housing market, higher energy costs and interruptions at its Pioneer sugar mill.
Coal miner Macarthur Coal had more positive news for the market though, today lifting its 2008 net profit forecast to between $80 and $90 million, up from its previous forecast of $67 to $75 million.
Acting chief executive Peter Kane said that the revision had come as a result of increased coal sales and shipments in June, despite Macarthur’s Coppabella mine in the Bowen Basin continuing to suffer the effects of earlier flooding. Macarthur shares rose almost five per cent this morning.
Finally, the Australian Bureau of Statistics today released surprisingly strong employment figures for June, with employment rising by almost 30,000 for the month.
The ABS said the unemployment rate fell to 4.2 per cent in June, from 4.3 per cent in May. Howerver commentators warn that the stronger labour market may add to the risk of another rise in official interest rates.
In individual share price movements on the ASX earlier today resource stocks fell along with the broader market. At midday BHP Billiton was down 92 cents, Fortescue Metals fell 11, Rio Tinto lost $1.22 while Woodside Petroleum dropped 58 cents.
The major banks all fell around three per cent this morning. At noon ANZ was down 58 cents, Commonwealth Bank fell $1.32, National Australia Bank shed 82, while Westpac lost 69.
Other blue chips also slumped into the red. AMP was down 11 cents at midday, News Corp lost 60, Telstra dropped four cents, while Woolworths lost 22.
US shares tumbled more than two per cent on Wednesday as renewed financial sector worries gripped the market, and investment giant Merrill Lynch plunged on a possible downgrade.
The Dow Jones Industrial Average closed down 236 points, while the Nasdaq composite fell 59.
In Asian trading today, Japan’s Nikkei was down 12 points at midday, while Hong Kong’s Hang Seng fell 243.
Meanwhile in company news on the ASX this morning, Australian conglomerate CSR saw its shares fall more then 15 per cent on a lower then expected earnings forecast.
CSR predicted a rise in earnings-before-interest-and-tax of more than five per cent this fiscal year – well shy of analysts’ expectations of a 14 per cent gain. The company said that while it expected growth in its building products and sugar units, it faced challenges from a softer housing market, higher energy costs and interruptions at its Pioneer sugar mill.
Coal miner Macarthur Coal had more positive news for the market though, today lifting its 2008 net profit forecast to between $80 and $90 million, up from its previous forecast of $67 to $75 million.
Acting chief executive Peter Kane said that the revision had come as a result of increased coal sales and shipments in June, despite Macarthur’s Coppabella mine in the Bowen Basin continuing to suffer the effects of earlier flooding. Macarthur shares rose almost five per cent this morning.
Finally, the Australian Bureau of Statistics today released surprisingly strong employment figures for June, with employment rising by almost 30,000 for the month.
The ABS said the unemployment rate fell to 4.2 per cent in June, from 4.3 per cent in May. Howerver commentators warn that the stronger labour market may add to the risk of another rise in official interest rates.
In individual share price movements on the ASX earlier today resource stocks fell along with the broader market. At midday BHP Billiton was down 92 cents, Fortescue Metals fell 11, Rio Tinto lost $1.22 while Woodside Petroleum dropped 58 cents.
The major banks all fell around three per cent this morning. At noon ANZ was down 58 cents, Commonwealth Bank fell $1.32, National Australia Bank shed 82, while Westpac lost 69.
Other blue chips also slumped into the red. AMP was down 11 cents at midday, News Corp lost 60, Telstra dropped four cents, while Woolworths lost 22.
