The appointment of Malcolm Turnbull as Australia's new Prime Minister has failed to boost confidence on the share market today. Although the Australian dollar jumped, the same can't be said for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) which fell roughly 1.3% around lunchtime.
The ASX has taken its lead from China whose sharemarket continued to plummet today. It fell 2.7% to 3029 points – down from a June high of 5178 points – with commodity prices also falling further overnight.
As you would expect under these conditions, it was Australia's miners who copped the brunt of the damage today while the banks are also falling. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: BHP) were down 0.9% and 1.5% respectively, while South32 Ltd (ASX: S32) was down 6%.
Westpac Banking Corp (ASX: WBC) was the worst performing bank, losing 2.3%, while National Australia Bank Ltd. (ASX: NAB) fell 2.1%. Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) were down 1% and 2%, respectively.
Elsewhere, Wesfarmers Ltd (ASX: WES), Telstra Corporation Ltd (ASX: TLS) and Woodside Petroleum Limited (ASX: WPL) were also trading in the red, dragging the overall sharemarket lower.
Indeed, with the ASX once again hovering around the 5030 point mark, now could be a great time to start loading up on some high-quality companies. In saying that however, investors should also expect the recent volatility to continue – particularly given the concerns from China and the prospect of an interest rate hike in the United States.
Through these times, it is imperative that investors don't panic but instead maintain their composure and focus on the long-term.
