ASX opens lower on US recovery doubts

The Australian share market has opened lower by almost 0.3 per cent after US investors became more cautious about economic recovery.

The S&P/ASX200 benchmark index was lower by 17.2 points, or 0.29 per cent, at 5830.6 points after the first 15 minutes of trade on Monday.

The All Ordinaries index was 13.0 points, or 0.22 per cent lower, at 5946.9.

Most sectors were trading lower and health took the biggest hit, down 0.84 per cent. Consumer staples were down 0.71 per cent.

Information technology was doing best, up 0.33 per cent.

The caution comes after the US Federal Reserve on Friday said it would use its full range of tools to support the US economy during this challenging COVID-19 period.

The central bank last week kept the benchmark interest rate at a record low of zero to 0.25 per cent and signalled it planned to keep it there for some time.

The cautionary economic forecast and concerns over a possible resurgence of COVID-19 had tempered investors’ appetite.

In Australia, Boral on Monday morning announced a new chief executive from July.

Zlatko Todorcevski from Adelaide Brighton will take the top job while current Boral boss Mike Kane will retire in September.

Data on people arriving from overseas in April will be published on Monday and may give some indication of how the airline industry is tracking amid the coronavirus pandemic.

The Australian dollar was buying 68.34 US cents at 1015 AEST, down from 68.61 US cents on Friday.

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