Australian share market is a sea of red as the ASX drops by 2 per cent

The Australian share market has slumped two per cent in opening trade after Wall Street hit a new low for the year and the British pound sunk to 1980s levels.

The Australian Securities Exchange’s benchmark S&P/ASX200 was 1.93 per cent weaker at 6,448.10 points within the first 50 minutes of trade on Monday.

The plunge reflected Wall Street’s slump with New York’s benchmark Dow Jones Industrial Average finishing 1.6 per cent weaker after hitting a new low for 20,000 and finishing below the 30,000 mark for the first time since June.

Worries about global inflation and big interest rate rises from the U.S. Federal Reserve.

The Australian share market has slumped two per cent in opening trade after Wall Street slumped to a new low for the year (pictured is the Australian Securities Exchange in Sydney)