Credit market woes hit Australian shares
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March 13, 2008 03:40pm
THE Australian share market retreated today as US woes over the global credit crunch resurfaced and local jobs figures fuelled fears of another rate rise.
At 1615 AEDT, the benchmark S&P/ASX200 index had fallen 122 points, or 2.32 per cent, to 5135.9, while the broader All Ordinaries slipped 118.4 points, or 2.22 per cent, to 5215.7.
On the Sydney Futures Exchange, the March share price index contract declined 92 points to 5135 on a volume of 31,779 contracts.
CMC Markets senior dealer James Foulsham said there were renewed concerns today the US Federal Reserve's plan to increase liquidity would not be enough to ease the global credit crunch.
As well, yesterday's short-lived rally – when local stocks surged 2.4 per cent – was partly driven by short sellers covering their positions, he said.
"People are still pretty uncertain," Mr Foulsham said.
"There's some doubts coming out of the US whether the $200 billion that's going to be injected is going to be enough money to sort out the problems.
"What we're seeing today is a lot of the stocks that bounced yesterday have just come straight back down.
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