Australian shares have fallen deeper into correction territory with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) plunging 0.6% to a fresh seven-month low of 5,357 points.
The market's confidence has been impacted by a slew of events, including relatively disappointing corporate earnings results, a considerable devaluation of the Chinese yuan in recent days, as well as further weakness in the commodities market. Indeed, it is the oil and gas sector's turn to disappoint today with companies such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) plummeting in value.
The pair lost 3.2% and 9% respectively wiping more than $1 billion of shareholder value after US oil prices fell to a new six-and-a-half year low. The oil price also acted as a drag on BHP Billiton Limited (ASX: BHP), Liquefied Natural Gas Ltd (ASX: LNG) and Origin Energy Ltd (ASX: ORG) which tumbled 1.1%, 4.4% and 5%, respectively.
Australia's biggest banks also weighed heavily on the market's performance. While Commonwealth Bank of Australia's (ASX: CBA) shares remain in a trading halt, Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) have fallen 1.5% and 1.6%, while National Australia Bank Ltd. (ASX: NAB) is down a more modest 0.8%.
On a more positive note, China's yuan reference rate has increased for the first time since Tuesday with the monetary authority suggesting there is no basis for depreciation of the currency to persist. That's a positive for the Australian economy while it should also provide an element of support for the miners.
Given the market's recent volatility, short-term traders are likely still reluctant to start buying again for fear of further losses. With the market sitting at a seven-month low however, now could be an excellent time to load up on some high-quality companies for the long-term.
Indeed, I purchased a small, exciting company this morning which I believe could do very well in the long-run. Unfortunately, under the Motley Fool's strict trading rules I'm not allowed to name the company for at least two days after purchasing, but I can tell you there are plenty more that I'm keeping my eye on. I could even look at making another purchase sometime next week.
