ASX plunges below 4000 points

The Australian Share Market (ASX) fell below 4000 basis points today after the US Federal Reserve warned that the US economy is heading towards bad economic times and after they had found evidence of China's economy slowing. As a result the Australian dollar fell to a level of approximately 103 US cents and the loss of 4000 points means that $31 billion in value has been wiped off, and the ASX is trading at its lowest point since April... which was when the last share market game was played.

This relates to Commerce as with economies world wide being battered by this news and news of the Eurozone debt crisis this is not good news for investors as markets world wide are being hit similar to Australia. For example, previously stable mining companies such as Rio Tinto had dropped $4.49 in one day, while BHP Billiton had fallen $1.50, at 6.45% and 4% respectively. Big 4 banks all dropped 2% of their value as the worsening economic crisis could hurt their long term profitability and growth.
This news is therefore not good for players of the share market game and for real investors as the uncertainty in Europe and America are hurting the market. However investors in Fosters will have something to smile about as SABMiller took over the company in an offer worth $12.3 billion. As a result Fosters jumped 8.2% and other liquor based groups such as Treasury Wine Estate and luxury accessories group OrotonGroup also rose after sales had exceeded expectations.

This hit on the share market has not helped the Australian dollar that is to go below parity against the greenback as it has been steadily dropping within the last few days, that could spell the end of the Australian dollar's strength against the US dollar.