ASX suffers small drop at open

Shares have dipped in early trade on the ASX after US markets retracted late in the session overnight.

The S&P/ASX200 benchmark index was down by 24.0 points, or 0.44 per cent, to 5383.1 points after the first 15 minutes of trade on Wednesday.

The All Ordinaries index was 21.4 points lower, or 0.39 per cent, at 5456.7.

The big four banks were lower by more than 1.0 per cent, and the materials sector – which includes the big miners – was down 0.33 per cent.

Most sectors were lower and property was the worst performer with a 1.29 per cent drop.

Energy stocks continued a great week – up 1.37 per cent – after gains in world oil prices.

Overnight Wall Street’s main indices finished higher after healthcare stocks rallied, oil prices surged and a number of countries and US states eased coronavirus-induced restrictions in an attempt to revive their economies.

However, stocks pulled back sharply late in the session after US Federal Reserve vice chair Richard Clarida made downbeat comments about the depth of the economic contraction.

On the home front, the Australian Bureau of Statistics on Wednesday will publish its revised retail trade figures for March, which will shed more light on how COVID-19 and social distancing has changed consumer spending.

In April, the bureau published the preliminary figures for March.

The ABS will also publish lending indicators data.

One Australian dollar bought 64.25 US cents at 1015 AEST, down from 64.46 US cents on Tuesday’s close.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.