ASX opens lower as trade hopes fade

The Australian share market has opened lower after Wall Street dipped as a rally sparked by optimism about US-Chinese trade prospects appeared to run out of steam.

The benchmark S&P/ASX200 index was down 11.1 points, or 0.17 per cent, to 6,631.5 points at 1030 AEDT on Tuesday, while the broader All Ordinaries was down 10.1 points, or 0.15 per cent, to 6,747.8 points.

The mining and energy sectors led losses after the first half hour of trade, falling 1.12 per cent and 0.84 per cent respectively.

Mining giant BHP was down 1.48 per cent to $35.99, Rio Tinto was down 1.21 per cent to $90.80 and Fortescue Metals was down 2.35 per cent to $8.74.

Santos, Woodside Petroleum, Oil Search and Beach Energy were down between 0.91 per cent and 1.45 per cent after oil prices slid overnight.

The big four banks were mixed after APRA said it was reviewing how much capital lenders must hold to support their subsidiaries.

ANZ was up 0.36 per cent to $27.77, Commonwealth was down 0.25 per cent to $78.87, NAB was up 0.11 per cent to $28.39, and Westpac was down 0.45 per cent to $28.77.

Bendigo and Adelaide Bank was down 0.75 per cent, Bank of Queensland was up 1.60 per cent, and Macquarie Group was up 0.28 per cent.

But tech shares more than held their own in early trading, advancing 0.95 per cent as a whole.

Afterpay jumped 3.19 per cent, Wisetech Global added 2.1 per cent, and Xero was up 0.92 per cent.

Telstra was up 0.43 per cent on the morning the telco was holding its annual general meeting as TPG gained 0.58 per cent, Vocus rose 0.29 per cent, and Amaysim bounced 1.43 per cent.

On Wall Street overnight, the Dow Jones Industrial Average finished down 0.11 per cent, the S&P 500 was down 0.14 per cent and the tech-heavy Nasdaq Composite was down 0.10 per cent.

The minutes of the Reserve Bank of Australia’s October 1 meeting are due to be released at 1130 AEST on Tuesday.

The Aussie dollar is buying 67.76 US cents, unchanged from Monday.

AAP

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