US Rates Hike Speculation Drives Down Australian Stocks
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Photo Credit: Petrick2008
Australian banks declined as they led the S&P/ASX 200 benchmark to its steepest fall in a span of three months. This came after Lehman Brothers Holdings Inc. posted a total loss of $2.8 billion while the Federal Reserve of the United States indicated that they may hike interest rates.
The S&P/ASX 200 Index came down by 154.60 points to 5,437.50 or a 2.8 percent change, and the All Ordinaries Index fell down by 2.6 percent or by 146.90 points to 5,544.30.
The largest Australian securities company Macquarie Group Ltd. lost A$4.19 to A$51.80, a change of 7.5 percent, which was the worst decline counting from March 13. Another company that lost a sizeable amount of money was Babcock & Brown Ltd., which is Australia’s second largest investment company. The firm tumbled down 74 cents, or 6.6 percent, and is now down to A$10.42, the company’s lowest price counting from May 2005.
National Australia Bank Ltd., also came down A$1.57 (5.3 percent) to A$27.95. Commonwealth Bank of Australia was not spared as it hit bottom at A$1.53(3.5 percent) to A$41.87, the lowest decline since March 17.
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