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Chapter 1: What is the main topic discussed in this episode?
a listener production.
Aussie stocks slide for a third straight session. Why are mining companies holding back the market most? And one of the key events investors will be watching this week. Good afternoon. I'm Steve Daglian. It's Tuesday, the 9th of June.
Chapter 2: Why did Aussie stocks slide for a third straight session?
Welcome to the CommSec Market Update. Well, hello, everyone. Welcome to a holiday shortened week. We've got the ASX 200 in negative territory today, slipping for a third consecutive trading day. We've got the index down by around a fifth of 1%.
Now, yes, we're down for three straight days, but it could have been much, much worse today because in the opening 10 to 15 minutes of the session, we're actually down by 1%. And that meant that over the past three days, our market had shed around 300 points or 3.2% of its value. We went from around 9,000 points Wednesday last week to around 8,600 points today.
So pretty heavy declines, but we did certainly steadily improve over the course of the day from those lows. Now, one reason for the early slump today was the fact that the share market was shut on Monday.
for the king's birthday long weekend so we had a lot of catching up to do with the rest of the world and the rest of the world really struggled over the prior couple of days so we had in the us on friday some pretty heavy declines which we'll get to in a second and on monday we also had pretty heavy losses across asia as well that were trading normally on monday
So putting some numbers around that, the S&P 500, the US market, was down 2.6% on Friday. It was the largest one-day sell-off since October last year, very much led lower by those tech stocks that have been the driving force behind The recent rally in US markets, which have been hitting a number of record highs in the past little while, but the tech-heavy Nasdaq was down 4.2% on Friday.
Yesterday, we had Japan's Nikkei down 3.85%. Hong Kong's Hang Seng had its fourth straight decline in excess of 1% as well, and shares in Shanghai fell by about 1.7%. So, This was really our first chance here in Australia to react to those moves. And the catalyst for the US declines firstly seem to be around a stronger jobs report.
So every month we have an update on employment in the United States, which is out on a Friday night. And this report came in twice as strong as what the market had expected. There were 172,000 jobs added last month. And then there was also an upgrade to the prior month's numbers in April.
So what that has done effectively is boost the market's expectations that the Federal Reserve might be forced to raise interest rates at some stage later this year, at the same time taking potential rate cuts off the table as well. Adding to this, we had tempers flaring in prior days between Israel and Iran. All of that seems to have calmed overnight as well.
So that perhaps helping our market come off its lows over the course of the session. Hope that all makes sense. But if we look at the different sectors across the market today, There are a couple of sectors that have done a bit of damage and are holding the market back most.
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