Australian share market suffers worse dive since early 2020 as inflation scares investors

The Australian share market has suffered its worst dive since March 2020 as inflation fears spook investors.

The benchmark S&P/ASX200 was down 5.3 per cent in early trade with more than $110 billion wiped off stocks. 

The plunge followed a bad session on Wall Street amid fears an American inflation rate of 8.6 per cent in May, the highest in four decades, would see the US Federal Reserve raise interest rates.

Banks are being hit badly with the Commonwealth Bank down 5.45 per cent in early trade to $88.67. 

Mining giant BHP was down 5.71 per cent to $43.58, with resources stocks a barometer of global growth. 

The Australian share market has suffered its worst dive since March 2020 as inflation fears spook investors

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