The Australian share market has slumped in early trade, joining the overnight retreat by United States and European equities on deepened worries about China’s economy. “It’s time for risk-off and there’s no place to hide”, said Richard Weeks, managing director at HighTower Advisors in Vienna, Virginia.
Other markets:Crude oil (http://www.marketwatch.com/story/oil-prices-rise-on-view-us-crude-output-will-keep-slowing- 2015-09-29) prices partly recovered from their 2.8% slide on Monday, while metals traded mixed. Elsewhere, the broader S&P 500 Index (SPX) will attempt to snap a five-day losing streak, despite Goldman Sachs cutting its year-end forecast for the benchmark to 2,000 from 2,100.
USA investors also got a few good news on the economic data front, with August personal spending rising 0.3% and personal income up 0.4%.
Several other Fed officials are scheduled to speak during the week, including Yellen on Wednesday.
The week will culminate with non-farm payrolls data on Friday.
The Dow Jones industrial average fell 312.78 points, or 1.9 per cent, to 16,001.89.
“What we have here is a jittery market, and with two days left to the quarter I don’t see much of a change in direction”, said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
“I think it’s a lot of panic”.
Wall Street started the week with another round of selling, placing the market squarely in “correction” mode.
Aluminum company Alcoa rose 2.9 percent after announcing it would split into two companies.
Dow member McDonald’s rose 1.6 percent following an upgrade from Credit Suisse, which said the fast-food giant’s sales outlook is starting to improve after a run of disappointing results. It is imperative to state that contracts to purchase homes have climbed a healthy 6.1 percent over the past 12 months on the back of the steady growth seen in the labour market and low mortgage rates. On the Nasdaq, 2,309 issues fell and 502 advanced.
The Dow and S&P 500 opened higher, but then dropped into negative territory.