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Stock market ‘absolutely thumped’ as ASX sheds 2.2%

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The Aussie stock market has slumped to its third straight session of losses as fears of a second wave of COVID-19 began to reverberate throughout global markets.

The index shed 2.19%, or 128 points, to close at 5,719. It was the first three-day losing streak in almost two months, with the market giving back nearly 7% since last Thursday.

CMC Markets’ Chief Market Strategist Michael McCarthy said sentiment began to sour over the weekend as news began to emerge that Beijing had seen a spike in COVID-19 cases.

“We saw real damage done today and it wasn’t just Australia,” Mr McCarthy told Brooke Corte on Money News.

“Every major index has finished in the red and here in Australia we were absolutely thumped, down 128 points – or more than 2% – with every single sector here finishing in the red,

“Huge volumes suggests there was real commitment in the selling and that often indicates that we could see further selling in the days and weeks ahead,”

Click play to hear Michael McCarthy’s full market wrap: