The S&P/ASX 200 Index (ASX: XJO) has taken a third consecutive dip on Wednesday, extending losses to 135 basis points since Monday.
At the time of writing, the equity benchmark is down 88 basis points, reducing year to date gains from nearly 9% last week to 7.8%.
Earlier in the day, the ASX 200 was down as much as 1.4% as global equities stumbled following the post-US election rally. Here's what's driving the market today.
What's behind the ASX 200's fall?
The ASX 200 has sold off sharply in the last three sessions. In technical terms, it now trades below its 30-day simple moving average.
Up until Tuesday, US shares had posted their largest five-day winning streak in about a year before taking a sharp turn overnight.
That negative sentiment looks to have spilled over into the Australian market. The financials sector is hardest hit, down 1.9% at the time of publication, with many bank stocks leading the descent.
As it stands, ANZ Group Holdings Ltd (ASX: ANZ) is down 3.96% after going ex-dividend, whereas Commonwealth Bank of Australia (ASX: CBA) came in with softer than expected results, seeing its stock slide around 1% lower.
Basic materials and energy stocks – those that make up the resources trade on the ASX 200 – are also in the red. This brings losses of their respective indexes to 4% and 2% for the past week.
Investors have responded to weaker-than-expected stimulus measures from China and potential tariff increases now that the US election has been decided. The outcome has seen Aussie resource plays sell off sharply.
These sectors have an outsized weighting in the index and are likely to drag it lower when shares are in distribution.
But it's not all macroeconomics puppeteering the strings. Plenty of detractors are driving the ASX 200 index lower today based on their company-specific updates.
Mineral Resources (ASX: MIN) is down 6% as it announced a pause on operations at its Bald Hill site in Western Australia. The decision to mothball is due to low spodumene prices, impacting around 300 jobs.
Life360 (ASX: 360) has slipped 7% into the red. Despite a fairly strong third-quarter earnings report, analysts were expecting more and have now flagged a softer full-year earnings outlook.
Meanwhile, Insignia Financial (ASX: IFL) has declined 4% following a guidance update that failed to impress the market.
Foolish takeout
The ASX 200 has been navigating volatile global conditions and is down for a third consecutive session.
Several factors are at play, both related to the economy, and some of the larger weightings in the index.
Zooming out, the index is up 17% in the past year to date.
