ASX200 down 0.6%; APRA hits banks, US futures tumble

Australia's share market succumbed to falls in banks as APRA tightened home lending standards and falls in US futures as bond yields rose on growing expectation of Fed tapering.

Stocks are likely to gain strongly. Picture: NCA NewsWire / Gaye Gerard

Welcome to the Trading Day blog for Wednesday, October 6. Australian stocks are down 0.5 per cent in the afternoon as sharp bank falls and travel losses offset tech gains. 

Australia's share market is being weighed down by sharp falls among the banks after APRA tightened lending standards and RBNZ moved to hike rates. 

The ASX 200 is down 0.5 per cent to 7221.80 at 1pm AEST.

The developments wiped out early gains, which followed a solid rebound in offshore equities overnight with Dow up more than 1 per cent, mirroring similar rises in the S&P 500 and the Nasdaq.

West Texas Intermediate (WTI) rose 1.7 per cent to $US78.93 a barrel - the highest price since 2014.

Originally published as ASX200 down 0.6%; APRA hits banks, US futures tumble