The ASX has fallen below

The ASX has fallen below the 5,800 level today, with the move taking the index back to a level it last traded at in October, as investors continue to fret about the prospect of a trade war between the US and China.

"The first thing to note is that 5,800 is a great support level," said Romano Sala Tenna, portfolio manager at Katana Asset Management.

The ASX has bounced off this level quite a few times, he noted, adding that the pullback in the ASX to this strong support level "should provide some confidence."

He noted that the Dow is also near a strong support level and that the American index has now fallen back to a level where it trades around 16 times earnings.

"The market was really looking for a reason to sell off and take profits," he said, speaking about the past few days of sharp losses. He added "in the short term the fear seems to have passed."

He believes the market will now start to focus on fundamentals such as earnings again, noting that US earnings season starts in two weeks.

Deutsche Bank has taken a look at the potential impact of higher BBSW rates on the Australian banking sector.

The analysts noted that between 28 per cent and 36 per cent of of the majors' total funding is raised through the wholesale market.