Friday, May 18, 2012

Shares set for six-month low amid euro woes

The local share market is on track for its lowest close since November, as worries about the stability of Greece and Spain spark a sell off.

The Australian dollar, meanwhile, has also touched a five-month low.

Local investors are following their overseas counterparts and pulling out of the share market as concerns about the global economic outlook increase.

A looming banking crisis in Spain, political turmoil in Greece and sluggish US data are the catalysts for today's sell off.

By 1pm (AEST), the All Ordinaries index had dropped 2.1 per cent to 4,122, while the ASX 200 index was off 2.1 per cent.

Mining stocks also slumped on global growth concerns, with BHP Billiton down 3.3 per cent to its weakest price since July 2009.

The big four banks had all lost between 2 and 3 per cent. Read More