S&P/ASX 200 (ASX:XJO) (INDEXASX:XJO) regained some of the losses made in the opening session, closing 0.9% or 53 points down to end at 5,838 for the day.
The ASX was hit by another round of chaotic selling in the U.S market, but clawed back some of the earlier losses by midday.
Midday: The ASX200 is trading at around 5,830
Japan markets have now opened with the Nikkei 225 (INDEXNIKKEI: NI225) trading down 2.64%.
Asia continues to look for guidance from the US futures markets as it prepares for its Friday of trade tonight.
10.40am: The ASX200 is trading at around 5,800
Energy and Utilities have been the hardest sectors hit this morning, both down over 2%.
IRESS ASX All Ords Market Map down 105pts a sea of red.. but what is the small green patch #gold stocks— CommSec (@CommSec) February 8, 2018
Newcrest NCM +0.14%, Evolution $EVN +2.6%, OceanaGold $OGC +4%#ausbiz pic.twitter.com/Ph0dqRmcYo
Pre-market wrap: S&P/ASX 200 to open lower after 1,000 point fall in the Dow
The Dow Jones industrial Index (INDEXDJX:DJI) plunged 4.1% to close at 23,860 points.
Tech stocks were caught up in the fallout, and the NASDAQ (INDEXNASDAQ:IXIC) shed 3.9% to close at 6,777 points.
SPI Futures indicates 107 point decline in ASX 200
The SPI Futures was indicating a 107 point decline in the ASX 200 as US markets closed, but this is likely to increase as the late fall in the Dow is digested.
The acceleration in the downturn in the Dow towards the end of trading will prove all the more worrying for Australian investors.
Having fallen approximately 500 points with only 90 minutes of trading remaining, the sell-off escalated towards the close with the index finishing down 1032 points or 4.1%.
Based on sectors that were hardest hit overseas, ASX financials, energy and tech stocks look the most vulnerable today.
Dow closes below last week’s low
The close of 23,860 points is below last week’s trough of circa 24,150 points.
Based on stock movements in the US, the financial sector could be the subject of broad-based selling.
One of the worst performers in the US was American Express (NYSE:AXP) as it plummeted 5.6%.
FTSE 100 sheds 1.5% on rate rise talk
FTSE 100 (INDEXFTSE:UKX) fell 1.5% to close at 7170 points after the Bank of England lifted its 2018 growth forecast from 1.6% to 1.8%.
In saying that inflation is likely to rise above 2% through to 2020 the BOE was seen as flagging both earlier rate rises and more substantial medium-term increases.
Mark Carney, Governor of the Bank of England, said: “It will likely be necessary to raise interest rates somewhat earlier and to a somewhat greater extent than we had thought”
Fall in crude prices adds to decline
In the course of trading in the UK, oil prices fell 1.4% to circa US$61.00 per barrel, prompting a sell-off in major oil stocks.
Base metals mixed while gold gains ground
Zinc and lead were the best performers amongst the base metals increasing circa 1% and 1.4% respectively.
Copper and nickel both lost a little more ground after the recent sharp declines, but the extent of the falls was less than 1%.
Nickel closed at US$5.94 per pound and copper finished at US$3.09 per pound.
There was little movement in the iron ore price, and it is sitting at US$77.32 per tonne.
Gold hovered in and out of positive territory, but as US equities markets started to spiral the precious metal was well sought after, closing up 0.4% at US$1319 per ounce
The oil price continued its decline after UK markets closed, and was down circa 2.4% as US markets drew to a close.