Australian stocks are getting crushed

The Australian market fell sharply but not as hard as some commentators expected as investors reacted to the Greek people rejecting the latest bail out plan.

The ASX 200 dropped 1.74% to 5,442.10 before recovering slightly to 5,467.80, down 1.27%. All ten sectors were in the, led by energy stocks, banks and the big miners.

Chris Weston, chief market strategist at IG, says there’s an element of waiting to see what happens in European markets. This could mean further selling down on the ASX tomorrow.

“We had expected a little more panic selling coming through, a bit more aggressive moves from markets and traders,” Weston told Business Insider.

“It’s a negative day but it doesn’t feel as bad as it could have been.

“I think there’s an element perhaps of people wanting to get direction from Europe. We’re already calling European markets down 3%.

“The worse case has eventuated and it’s going to be a testing 48 hours. Perhaps we’ll see some further selling tomorrow if there’s a big sell off (in Europe) tonight and we suspect that will be the case.”

On the ASX today, the big banks have all lost ground, led by the Commonwealth at $85.11. down 1.78%. AMP shed 2.89% to $6.04.

Among the miners, BHP had lost more than 2% to $26.03 and Rio Tinto 1.91% to $51.50.

Energy stocks lost 2.34% across the board. Woodside Petroleum was down 1.78% to $34.14 and Santos 2% to $7.85.

Gold miners, with their traditional safe haven precious metal, were just about the only stocks in favour. Northern Star was up 3.8% to $2.18, Ocean Gold 3.25% to $3.18 and Newcrest 1.75% to $12.77.

Greece voters overwhelmingly rejected the latest bailout package from European creditors in Sunday’s referendum.

The Australian dollar crashed to six-year lows overnight as traders worry the Greek No vote will unleash market turmoil.

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Bernard Tomic has been dumped from the Davis Cup after Wimbledon attack

It’s been a tough week for Bernard Tomic.

The Australian tennis player and young gun has been dumped from playing in the Davis Cup quarter-final against Kazakhstan this month following his outburst at Tennis Australia officials on Saturday.

The decision was announced at Wimbledon yesterday by Tennis Australia President Steve Healy who said that “his behaviour was unacceptable”.

“Playing for our country is an absolute privilege, and with that privilege comes an obligation to behave appropriately. He didn’t.

“The allegations are misinformed and untrue and he publicly derided some outstanding people. We are trying to build a strong culture underpinned by a philosophy of opportunity, not entitlement. This behaviour is just not on.”

During the post-match conference after his third-round exit to world number one Novak Djokovic, Tomic lashed out at Chief Executive Craig Tiley for “not respecting me”.

“He’s the reason the last few years have been up and down for me. There has been a lack of support towards me. There has been no respect, I think, towards me.

“I didn’t get one phone call from Tennis Australia asking: ‘Can we help you, Bernard? Can we do this? Do you need something?’”

During his 10-minute rant, Tomic also accused Australian tennis legend and former number one Pat Rafter for being a “good actor” and “the mask” for Tennis Australia officials.

“The allegations are misinformed and untrue and he publicly derided some outstanding people,” said Healy.

“We are trying to build a strong culture underpinned by a philosophy of opportunity, not entitlement. This behaviour is just not on.”

The axe came shortly after Tomic said that he had “always wanted to play Davis Cup” and would compete in the century-old tournament “for the respect of the Australian public” and retiring champion Lleyton Hewitt and “not for Tiley”.

“He’s a very keen Davis Cup player, a great Davis Cup player. He’s very disappointed not to play,” said Healy.

“Hopefully he will learn from this. Our entire tennis community is committed to working hard to help all our players, including Bernard, be the best tennis players, and the best people, they can be.”

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Chinese stocks got hosed again

For a third consecutive week China’s stock market has been hosed.

The benchmark Shanghai Composite index lost an additional 5.8% on Friday. Elsewhere the Shanghai Composite’s namesake to the south, the Shenzhen Composite, fell 5.3%%, while the CSI 300, an index of the 300 largest listed firms in Shanghai and Shenzhen, dropped a further 5.4%. The ChiNext index, nicknamed China’s “Nasdaq”, fell 1.7%.

For the week all bar the CSI 300 recorded a loss in excess of 10%. The CSI 300 was spared on this occasion, losing only 9.8%.

Since hitting multi-year highs in June the Shanghai Composite, Shenzhen Composite, CSI 300 and ChiNext indices have lost 28.8%, 33.6%, 27.8% and 35.5% respectively.

Still, putting those losses into perspective, they all remain more than 75% higher than a year ago.

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Australia’s massive services sector is back in expansion territory – but it’s not all good news

Unlike Australia’s manufacturing PMI, which tanked in June, Australia’s massive services sector climbed back into the expansion territory to end the financial year up 1.6 points to 51.2.

The AiGroup said it’s Performance of Services Index (PSI) showed 3 of the 5 ‘activity’ sub-indexes were in expansion territory with strong gains in sales which rose 8.2 to 53.4 and new orders up 6.9 to 54.8.Supplier deliveries were also up, rising 2.1 to 51.4. On the negative side the employment sub index tanked 10.7 points to 47.3 and inventories dipped 1.8 to 46.4.

The latter two are concerning given that inventories falling for the 13th consecutive month and a big reduction in employment plans suggests a business sector still worried about the future economic prospects for the economy.

Also troubling is that with only three of the nine services sectors the AiGroup surveys in expansion territory the PSI shows how concentrated gains in the sector are.

Innes Willox, the AiGroup CEO, highlighted this. “The improvement in services industry conditions so far this year has been concentrated in consumer services. Increased housing market activity and very low interest rates are now assisting retail and personal and recreational services, although consumer confidence and household income growth are still below par. For the more business-oriented services sub-sectors, weak business confidence, an uncertain outlook, and low private and public investment, are still weighing on demand across a range of design, consulting, personnel and administrative services,” he said.

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The US President just held a Twitter Q&A on healthcare, the Chicago Bulls and guacamole

United States President Barack Obama wrapped up a Twitter Q&A on healthcare but he also responded to some unrelated questions — and his answers were awesome.

After six years of presidency, the #TweeterInChief opened his first Twitter account in mid-May. And even though he’s only got 66 tweets under his belt, he’s been making the most of it.

Earlier this year, Obama and former president Bill Clinton had a cheeky Twitter exchange regarding the @POTUS Twitter handle.

So when Obama held a live-tweet #AskPOTUS Q&A from Nashville, Tennessee, people tuned in to send plenty of serious policy questions about the Affordable Care Act and Medicaid. But the President also took time to respond to off-subject queries about basketball, music and guacamole.

He began by posting a picture of himself with a glass of water and a keyboard, saying “Alright, let’s do this.”

He detailed his plans to continue expanding access to affordable health insurance.

But Obama wasn’t averse to straying from the topic either, professing his love of hip-hop and garage blues in the same tweet.

He also gave the Presidential Seal of Approval to the Chicago Bulls basketball team’s re-signing of guard Jimmy Butler.

And after it was all said and done, he encouraged people to keep the “healthcare conversation going”, signing off with:

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