Trading Day: ASX200 dives 1.8% in $42bn wipeout; CBA down 5.4%

Investors wiped $42bn off Australian shares and government bond yields dived as global markets were roiled by hawkish comments from a Federal Reserve official and CBA shares plunged 

Weakness on stocks comes after overseas markets took a beating on Friday. Picture: AAP

Australian stocks tumbled to be down nearly 2 per cent at lunch as markets felt the impact of a hawkish shift from the Fed.  Seven attacked Boral's US deal and  CBA sold its general insurance business.

It comes after Wall Street took a beating on Friday after a US Fed official's suggestion there could be rate rises as early as 2022. Asian stock also tumbled.