(Reuters) - Australian shares closed at a near three-week low on Tuesday, as a rise in cases of the novel coronavirus around the world and fading hopes on a timely U.S. stimulus deal stoked fears of a prolonged global economic pain.
The S&P/ASX 200 index .AXJO fell 1.7% to 6,051.00, its lowest close since Oct. 7.
Record daily cases in the United States, Russia, France and many other countries, and a lack of progress in U.S. stimulus deal talks pulled global markets lower. Wall Street’s main indexes too closed down overnight. [.N] [MKTS/GLOB]
“We are now past the time for a stimulus agreement in the United States. This now means that nothing will be forthcoming until, say, February 2021,” said Brad Smoling, managing director at Smoling Stockbroking.
Markets are starting to realise the possibility of a bank failure either in the United States or Europe due to untimely stimulus and possible further lockdowns from higher virus numbers, Smoling said.
Denting sentiment further was a Reuters poll that showed lower immigration and high unemployment will keep the Australian recovery’s path uneven despite the worst having passed for the economy.
Energy stocks .AXEJ were the top losers, closing nearly 3% lower as oil prices dropped.
Santos STO.AX tumbled 3.6% and Woodside Petroleum WPL.AX closed 3.3% down.
Miners .AXMM shed 2.2%, with BHP Group BHP.AX and Rio Tinto RIO.AX each falling about 2.5%.
The heavyweight financial index .AXFJ fell 1.3%, with the "Big Four" banks losing between 0.8% and 1.4%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 1.8% lower at 12,251.91, a near three-week low.
New Zealand posted a monthly trade deficit of NZ$1.017 billion in September, compared with NZ$353.00 million in August, data from Statistics New Zealand showed on Tuesday.
Reporting by Nikhil Subba in Bengaluru; editing by Uttaresh.V
"low" - Google News
October 27, 2020 at 04:51AM
https://ift.tt/3e0N8Wb
Australian shares drop as global virus cases climb, U.S. stimulus deal stalls - Reuters
"low" - Google News
https://ift.tt/2z1WHDx
Bagikan Berita Ini
0 Response to "Australian shares drop as global virus cases climb, U.S. stimulus deal stalls - Reuters"
Post a Comment