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The Australian stock market was on its way to its third worst day of the year with almost all indices still in the red at noon after the fall of Wall Street.
After plunging into the open, the S & P / ASX200 benchmark stabilized, down 111.9 points, or 1.85%, to 5,937.9 points at 12:00 pm ET. EASD.
The ASX200 is below the 6000 point mark for the first time since the beginning of June, while the All Ordinary Total is down 116.9 points, or 1.9%, at 6046.9.
Technology-related stocks registered the largest decline, with the sector losing more than 4.5% due to a bad US session.
Energy and healthcare also took a hit, while heavyweight financial sectors and materials were at a doldrums.
Telstra, the telecommunications giant, is down 1.4% after being excused from shareholders for its lack of clarity in how it calculates bonuses paid to executives, recognizing that some investors still feel that They are too high despite a reduction of 30%.
Shares of CSL, which blocked the market on Wednesday, fell by 1.5%, while Cochlear Limited lost more than 2%.
Only the gold miners and the Fortescue Metals group offered real relief as investors sought a haven of peace, recovering from yesterday's stagnation to advance Evolution by more than 4% and St Barbara by 4.8 % at noon.
Fortescue Metals Group has launched a share buyback program worth up to $ 500 million (US $ 355 million), joining the biggest rival Rio Tinto in returning its cash to shareholders.
FMG shares rose 1.36 percent to $ 3.72, while shares in BHP fell 2.62 percent to $ 33.81, a decline only marginally worse than that of fellow mining giant Rio Tinto. at 77.25%.
The Australian dollar kept its head out of the water, buying 70.65 US cents at 70.13 cents on Wednesday.
The four largest banks recorded a decline of 1.22 to 1.9%, with ANZ leading the group.
Commonwealth Bank chief executive Matt Comyn appeared before the House Economic Committee, as the market opened with Westpac leader Brian Hartzer to hold a hearing on Thursday. which is the first of three held for a week.
Macquarie Bank shares fell 3.86% to $ 118.16.
This came after the fall in Wall Street shares on Wednesday, with the loss of more than 3% of major indices following a liquidation caused by the sudden rise in US interest rates and increasing concern over trade.
When the dust dissipated after a crash, the Dow Jones Industrial Average lost 3.2%, or 830 points, to finish at 25,498.74 points, the biggest drop since February.
The broad S & P 500 index fell 3.3% to stand at 2,785.68, while the Nasdaq Composite Index, rich in technology, collapsed by 4.1% to end the session at 7,422.05.
The Nasdaq decline is the worst in percentage since the Brexit surprise vote in June 2016.
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The losses were relatively broad, with Amazon and Microsoft technology companies losing 6.2% and 5.4% respectively. Apple, Boeing, Nike and Visa all fell by more than 4%, while Caterpillar and 3M lost nearly 4%.
US equities posted solid gains in the third quarter, with investors dispelling worries over trade wars and bolstering strong corporate earnings and strong US economic data.
But equities have been under pressure since the 10-year US Treasury yield surpassed the 3% mark last week, a sudden move that fears the economy will overheat, accelerate the pace of growth. 39, inflation and a more aggressive rise in interest rates of the Federal Reserve.
"Fear is rising," said David Kotok, chief investment officer at Cumberland Advisors. "Investors wake up."
"This is changing the tectonic plates," said Jack Ablin, investment director at Cresset Wealth Advisors. "Equity markets have benefited from capital flows because bond yields have been so derisory. When rates return to fair value, the capital will eventually out of the equity risk taking. "
The turmoil occurred a day after the International Monetary Fund reduced its global growth forecast due to concerns about trade wars and emerging market weakness.
Tom Cahill, of Ventura Wealth Management, said investors were also troubled by the remarks of the luxury company LVMH about the repression of certain goods in China in the bitter conflict between the country and the United States.
"Two weeks ago, this kind of news would not have affected the market," he said. "But as we are now in a corrective phase, all bad news is accelerating the decline."
LVMH's difficulties have also raised concerns about the weakening prospects for luxury brands due to the worsening global economic outlook. Among US brands, Tiffany fell by 10.2% and Michael Kors Holdings by 7.1%.
American airlines were another big loser: American Airlines slipped 5.8% and Southwest Airlines 3.6%, a major hurricane causing flight cancellations in Florida.
Gina Martin Adams, chief equity strategist at Bloomberg Intelligence, said investors were concerned about the sharp rise in yields, which makes borrowing more expensive.
She also expressed concern that corporate profit margins, such as the price of oil, will reduce their profit margins.
Technology and Internet companies are known for their high profit margins. Many have reported explosive growth in recent years, accompanied by a corresponding rise in the price of their shares. Adams said investors were also concerned about their future profitability.
This has helped make technology stocks more volatile in recent months. "As stocks rise, technology increases more than the stock market. As stocks fall, technology goes down more than the stock market, "she said.
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