The Australian sharemarket's 'Grelief' rally appears to have run out of steam with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) falling heavily during today's session.
The benchmark index plunged 81 points, or 1.5%, wiping out a large portion of the gains made over the last three sessions on the back of disappointing jobs data from the United States, ongoing concerns about the upcoming "Greferendum" (Greek referendum), as well as a plunge in the price of iron ore overnight.
Iron ore plummeted a massive 6% to roughly US$55 a tonne after data showed a record level of exports from Port Hedland in June, putting an end to any hopes that the commodity's price could be sustained around the US$60 mark. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) fell 1.8% and 1.2% respectively, while the smaller, higher cost Fortescue Metals Group Limited (ASX: FMG) crashed 5%, wiping more than $500 million from its market value.
Oil prices also dipped overnight with Australia's energy stocks acting as a further drag on the market. Woodside Petroleum Limited (ASX: WPL) fell 1.5%, while Santos Ltd (ASX: STO), Oil Search Limited (ASX: OSH) and Origin Energy Ltd (ASX: ORG) all lost more than 3%.
The nation's Big Four banks weren't able to hold onto their recent gains, either. Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) retreated 1.2%, 1.6% and 1.1%, respectively, while National Australia Bank Ltd. (ASX: NAB) crashed 1.8% to $33.43 per share.
Although conditions on the market have picked up over the last three days, it was always likely that the situation currently unfolding in Europe would cause a fresh round of turbulence. While there are some great bargains to be had across the market, investors should also brace themselves for further volatility over the coming weeks.
