ASX down another 110 points

As expected the Australian bourse is in free fall this morning, dropping 110 points, or 2.6% to 4207. The drop follows substantial losses on Wall Street and European markets overnight.

The top 20 stocks are a sea of red with banking and mining stocks feeling the heat.

Macquarie Group (ASX:MQG) is down over 5% to $42.02, the Commonwealth Bank (ASX:CBA) is down $1.16 to $48.91 and the National is down 72c to $22.53 a drop of over 3%.

BHP Billiton is down 93c to $35.82, but is faring better than Rio Tinto which is down $2.90 to $59.35 a drop of 4.6%. Even Lihir Gold (ASX:LGL) is off dropping 7c to $3.86

Telstra (ASX:TLS) dropped 5c to $2.97, Qantas (ASX:QAN) dropped 8c to $2.32 and even defensive stocks like Woolworths are down 27c to $26.48

Gunns Limited (ASX:GNS) shares were hit hard again, dropping a jaw dropping 9% to 33.5c, a quarter of its 52 week high of $1.32 The timber firm is threatened by a class action by IMF Australia that alleges the company did not adequately inform the market about its drop in half year profits.