Australian shares have posted their largest one-day loss in two months as nervous investors looked to steep falls on Asian markets due to fears of a credit crunch in China.
The Australian share market is expected to extend its losses in morning trade after opeing more than one per cent lower, but should make something of a late recovery into the close.
Gold and silver futures have pulled higher as investors who wagered on lower prices cashed in gains on the previous day's slump, and as a rebound in physical purchases buoyed prices.
US investors have endured another down week after the Federal Reserve surprised markets by signalling that it would begin to taper its bond-buying program later this year.
The Australian dollar has fallen below the 92 US cent mark as a report showing weakness in Chinese manufacturing adds to worries about the US Federal Reserve scaling back economic stimulus measures
Australian shares suffered their worst loss in a day since February amid jitters over a cutback in US stimulus measures and weaker than expected Chinese manufacturing data.
Australian shares have opened lower after the US Federal Reserve indicated it could wind back of its massive stimulus program for the world's largest economy before too long.
Australian shares have gained ground as investors took a cautiously optimistic stance ahead of a keenly awaited update on economic stimulus measures in the United States.
The Reserve Bank of Australia may not have cut the cash rate at its June meeting but has indicated it is prepared to cut further even though the Australian dollar is falling.
US stocks have surged a day before the Federal Reserve begins meeting to review monetary policy, with expectations mounting that it will make no sharp changes to its economic stimulus.
The Australian dollar is slightly higher as traders wait for an announcement on whether the US Federal Reserve will wind down its economic stimulus measures.
The Australian dollar is weaker following a fall on Wall Street after a flat reading on US industrial production for May and a decline in the University of Michigan consumer sentiment index.
US stocks ended last week in the red as market speculation boiled over the Federal Reserve's stimulus program ahead of the Fed monetary policy meeting next week.
