(RTTNews) - The Australian stock market closed at its lowest level in almost three years on Monday, extending losses for a third straight trading session. Stocks fell across the board after Wall Street finished Friday’s volatile session sharply lower amid fears that the U.S. government’s financial rescue plan may not avert a recession in the world’s largest economy. The benchmark S&P/ASX 200 index closed down 155 points or 3.3% at 4,540.4 and the broader All Ordinaries index shed 158.1 points or 3.4% to finish at 4,544.7.

In the currency market, the Australian dollar closed at a two-year low following one of its biggest one-day falls since floating almost 25 years ago. The Australian dollar fell 3.05 U.S. cents to finish the local session at US$0.7495-0.7498, down from Friday’s close of US$0.7799-0.7805.

The major U.S. averages extended their losses after Friday’s U.S. jobs report showed the biggest fall in more than five years. The Dow closed down 157 points or 1.5% at 10,325, the Nasdaq dropped 29 points or 1.5% to 1,947.39, and the S&P 500 gave away 15 points or 1.4% to 1,099.

Oil prices continued to slide, as fears of a global economic slowdown heightened concerns that demand for oil would fall. At 2:54 a.m. ET, crude oil futures traded at $90.84 a barrel, down $3.04. The contract for November delivery dropped 9 cents to settle at $93.88 a barrel on Friday in New York trading.

Among major banks, Commonwealth Bank fell 2.2%, ANZ plunged 3.5%, and National Australia Bank shed 2.3%. Westpac plummeted 3.1% and its takeover target St George Bank dropped 2.8%.

Banking and insurance group Suncorp-Metway jumped 3.8% after the company confirmed that parties were talking of buying its banking and wealth management operations. QBE Insurance Group edged up 0.3%, but AMP gave away 2.3% and AXA Asia Pacific tumbled 6.3%.

The big diversified miners closed lower, with index leader BHP Billiton falling 2.1% and its takeover target Rio Tinto losing 5.0%. Gold miner Newcrest Mining lost 4.2% and Lihir Gold gave away 4.6%. Energy sector leader Woodside Petroleum slid 2.0%, Santos declined 2.5% and Oil Search slumped 8.9% as oil prices continued to fall on Monday in the Asian session.

In the retail sector, Woolworths shed 2.3% and Coles owner Wesfarmers plunged 3.7%.

Uranium miner Paladin Energy sank 7.1% after the Northern Territory government granted hotly contested uranium exploration license to Namibia-focused miner and Canada’s Cameco.

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Posted in Categories: Canada, Economy, Releases, USA.

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