Shares dip after US markets end lower

Shares were marginally lower after trading opened on the Australian market, following a drop in US markets on surging virus cases and profit-taking.

The S&P/ASX200 benchmark index was lower by 6.3 points, or 0.1 per cent, at 6006.6 points after the first 15 minutes of trade on Wednesday.

The All Ordinaries index was 4.9 points, or 0.08 per cent lower, at 6121.8.

Overnight, the Dow, S&P 500 and Nasdaq all dropped overnight after large parts of the US reported tens of thousands of new coronavirus infections.

Strategists said investors may also be taking profits after the recent run higher.

The Dow Jones Industrial Average fell 1.51 per cent, the S&P 500 lost 1.08 per cent and the Nasdaq Composite dropped 0.86 per cent.

In the local market, financials were the worst affected of the industry sectors.

Property and information technology were down 0.36 per cent.

Materials steadied the market, higher by 1.15 per cent.

Investors’ fears of economic impact from rising virus cases in Victoria have been justified. Melbourne has returned to lockdown for six weeks after 191 cases were reported on Tuesday.

The Australian dollar was buying 69.42 US cents at 1015 AEST, down from 69.52 US cents at the close of trade on Tuesday.

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