Concerns that a trade deal between the United States and China may not be reached until after next year’s US election rattled Australian shares on Wednesday, seeing the benchmark S&P/ASX 200 Index post its largest two-day percentage slide since early August.
“Equities had been marching higher heading into the final three months of the year and the Santa rally looked to be on a firm footing,” said Kerry Craig, global market strategist at J.P. Morgan Asset Management. “Markets may recalibrate their expectations for early resolution to the China-US trade war.”
The benchmark index slumped 1.6 per cent, or 105.8 points, to 6606.5, adding to a 2.2 per cent slide on Tuesday. It now sits at its lowest level since October 11, after hitting a record high late last week.
In the past two trading sessions, the value of Australia’s top 200 stocks has fallen by a combined $76 billion.