The Australian stock market is modestly lower on Monday, giving up some of the gains of the previous session, with the benchmark S&P/ASX 200 falling below the 7,300 level, as traders are spooked by the worsening domestic coronavirus infections and the two-week lockdown in Sydney. The cues from Wall Street on Friday were mixed.
Traders are concerned after New South Wales reported 30 new COVID-19 cases on Sunday, the first day of a two-week lockdown in Sydney and Darwin . The state is fighting to quell an outbreak of the highly contagious Delta variant. Another eight cases across Australia also forced tighter restrictions in four states.
The benchmark S&P/ASX 200 Index is losing 24.00 points or 0.33 percent to 7,284.00, after hitting a low of 7,273.70 earlier. The broader All Ordinaries Index is down 29.30 points or 0.39 percent to 7,549.30. Australian stocks closed modestly higher on Friday.
Among the major miners, BHP Group is gaining almost 1 percent and Rio Tinto is edging up 0.2 percent, while Fortescue Metals and Mineral Resources are edging up 0.4 percent each. OZ Minerals is losing more than 1 percent.
Oil stocks are mixed, with Oil Search, Woodside Petroleum and Santos gaining almost 1 percent each, while Beach energy is losing almost 1 percent and Origin Energy is edging down 0.4 percent.
Among tech stocks, Afterpay is losing more than 6 percent, while WiseTech Global and Appen are down more than 1 percent. Xero is declining almost 1 percent.
Gold miners are weak. Evolution Mining and Resolute Mining are losing more than 2 percent each, while Newcrest Mining and Northern Star Resources are edging down 0.2 percent each. Gold Road Resources is plunging more than 7 percent.
Among the big four banks, ANZ Banking, National Australia Bank and Westpac are losing almost 1 percent each, while Commonwealth Bank is edging down 0.3 percent.
Westpac is selling its motor vehicle dealer finance and leasing businesses to non-bank financier Angle Finance, a portfolio company of U.S. private equity giant Cerberus Capital Management. Westpac will retain its existing retail auto loans.
Travel and hospitality stocks were battered on news of the two-week lockdown in Sydney, with Qantas losing almost 5 percent, while Flight Centre, Corporate Travel and Webjet are down more than 3 percent each. Sydney Airport is down more than 1 percent.
In the currency market, the Aussie dollar is trading at $0.758 on Monday.
On Wall Street, stocks closed on a firm note on Friday as optimism about strong economic growth outweighed concerns about inflation, prompting traders to build up fresh positions at several counters. The major averages all closed higher, with the S&P 500 hitting a new record high in the session.
The Dow ended Friday’s session with a gain of 237.02 points or 0.69 percent at 34,433.84, while the Nasdaq edged down 9.32 points or 0.06 percent to settle at 14,360.39. The S&P 500 ended the session with a gain of 14.21 points or 0.33 percent at 4,280.70, slightly off a new high of 4,286.12.
The major European markets also turned in a mixed performance on the day. While the U.K.’s FTSE 100 Index climbed by 0.4 percent and the German DAX Index moved up 0.1 percent, the French CAC 40 Index slid 0.1 percent.
Crude oil prices moved higher on Friday. West Texas Intermediate Crude oil futures for august rose 1 percent to $74.05 a barrel.
Market Analysis
Australian Market Modestly Lower
2021-06-28 01:57:49
