The Australian stock market is modestly lower on Tuesday, after ending flat in the previous session, with the benchmark S&P/ASX 200 staying below the 7,300 level, as traders braced for further updates on a worsening domestic coronavirus situation in some states. Stocks across most sectors are weak with only technology stocks, following their peers on the tech-heavy Nasdaq, providing a boost. The cues from Wall Street overnight were mixed.
Health authorities issued lockdowns in Sydney, Darwin and Perth and introduced fresh restrictions in Queensland following several outbreaks of the highly contagious Delta variant. New South Wales is bracing for an escalation in the number of locally acquired COVID-19 cases as about 130 people have been infected since June 16, when the first case was reported at Bondi in Sydney’s east.
The benchmark S&P/ASX 200 Index is losing 63.60 points or 0.87 percent to the day’s low of 7,243.70. The broader All Ordinaries Index is down 63.20 points or 0.84 percent to 7,509.30. Australian stocks closed near the unchanged line on Monday.
Among the major miners, BHP Group, Rio Tinto and OZ Minerals are losing more than 1 percent each, while Fortescue Metals and Mineral Resources are down almost 1 percent each.
Oil stocks are lower. Oil Search is losing almost 2 percent, while Santos and Woodside Petroleum are down more than 1 percent each. Beach energy and Origin Energy are declining more than 2 percent each.
Among the big four banks, ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac are all losing almost 1 percent each.
Among tech stocks, Afterpay and Xero are gaining more than 1 percent each, while WiseTech Global is losing more than 1 percent. Appen is adding almost 1 percent.
Gold miners are mostly higher after gold prices climbed overnight. Newcrest Mining and Northern Star Resources are edging down 0.3 percent each, while Evolution Mining and Resolute Mining are losing almost 2 percent each. Gold Road Resources is declining more than 3 percent.
In other news, shares in Kathmandu are down more than 3 percent after the outdoor clothing and equipment retailer issued a profit warning due to lost sales from the Sydney lockdown.
In the currency market, the Aussie dollar is trading at $0.756 on Tuesday.
On the Wall Street, stocks closed on a mixed note on Monday as investors largely stayed cautious and selective with their moves. Concerns about the spread of the delta variant Covid-19 in Europe and Asia, as well as the resultant fresh restrictions on travel in several countries weighed on sentiment.
The major averages, the Dow ended the session with a loss of 150.57 points or 0.44 percent at 34,283.27. Meanwhile, the S&P 500 ended up by 9.91 points or 0.23 percent at 4,290.61 and the Nasdaq settled at a record closing high of 14,500.51 with a gain of 140.12 points or 0.98 percent.
Meanwhile, the major European markets moved to the downside on the day amid concerns about fresh travel-related restrictions due to the spread of the delta variant of Covid-19 in several parts of the continent. The U.K.’s FTSE 100 declined 0.88 percent, Germany’s DAX ended 0.34 percent down and France’s CAC 40 lost 0.98 percent.
Crude oil prices were lower amid concerns about energy demand and on caution ahead the OPEC+ meet, scheduled to take place on Thursday. West Texas Intermediate Crude oil futures for August ended down by $1.14 or about 1.5% at $72.91 a barrel, the lowest close since June 18.
Market Analysis
Australian Market Modestly Lower
2021-06-29 01:26:46
