Veteran trader warns investors to brace for more global market panic

A veteran trader has a blunt message for anyone hoping the turbulence is temporary: expect more panic in global financial markets. Appearing on ABC's business coverage, the trader warned that investors still have major market developments to price in, and the process is likely to keep sending markets swinging. The caution was delivered in a five-minute segment on the network's iview business programming.

The warning comes as the same outlet's business coverage has tracked a rough run of data. Shares in data centre operator NEXTDC plummeted more than 40 per cent after the company returned to trade and downgraded its revenue and earnings guidance, following community opposition to one of its Melbourne data centres. Oil, meanwhile, touched a six-month high on Friday as hopes of a peace deal in the US-Iran war faded, and the unemployment rate hit a five-year high — which markets read as a stronger case for the Reserve Bank to leave rates on hold in November.

Rate expectations are split. Commonwealth Bank chief economist Luke Yeaman says a November hike is possible, with another potentially following next year if inflation persists. AMP chief economist and head of investment strategy Shane Oliver went further, saying the oil move and related pressures suggest there is a high likelihood of another rate hike next week.