The S&P/ASX 200 index has started the week on a very disappointing note. At lunch the benchmark index is down a sizeable 5.5% to 5,877 points.
Here's what has been happening on the market today:
Oil prices collapse.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) have been sold off today after oil prices collapsed. Following 10% declines on Friday night, oil prices fell a further 30% this morning. The catalyst for this has been concerns that Saudi Arabia and Russia are about to embark on a price war. According to Bloomberg, the WTI crude oil price is down 21% to US$32.63 a barrel and Brent crude oil is also down 21% to US$35.80 a barrel.
Bank shares sink lower.
Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four banks are sinking lower on Monday. Concerns that the oil price collapse could cause a credit crunch appears to be weighing on the banks today. ANZ's shares are the worst performers in the group with a decline of almost 6%.
Tech shares sold off.
The broad market selloff has hit the tech sector particularly hard as well. The S&P/ASX 200 information technology index is down 7% at lunch. Poor performers on that index include Afterpay Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) shares which are down 10% and 9%, respectively, at lunch.
Best and worst performers.
The best performer on the ASX 200 at lunch is unsurprisingly a gold miner. The Newcrest Mining Limited (ASX: NCM) share price is up a solid 5.5% at lunch amid increasing demand for safe haven assets. The worst performer on the index is the Oil Search Limited (ASX: OSH) share price with a 30% decline after the oil price collapse.
