ASX 200 falls:  What is weighing on the benchmark index?

Summary

  • The Australian sharemarket opened flat on Tuesday even as the S&P 500 and the tech-heavy NASDAQ closed at record highs overnight.
  • The benchmark index was trading weak due to negative sentiment around coronavirus-induced lockdowns across the country.
  • By 10:30 AM (AEST), the ASX 200 was trading 0.67% lower, at 7,258.

The Australian sharemarket opened flat on Tuesday after the S&P 500 and the tech-heavy NASDAQ closed at record highs overnight. The benchmark ASX 200 was started the session 0.70 points higher, at 7,308.

By 10:30 AM (AEST), the ASX 200 was trading 0.67% lower, at 7,258.

The ASX 200 index was flat at 7,307.3 points, with travel and technology stocks leading losses.

Meanwhile, on Wall Street, the Dow Jones fell 0.44%, while the S&P 500 gained 0.23%. The NASDAQ added 0.98%.

Source: ©Miflippo  | Megapixl.com

READ MORE: Five exciting ASX stocks you might not want to miss

What has happened so far?

The index has lost 1.14% for the last five days and sits 2% below its 52-week high.

The benchmark index was trading weak due to negative sentiment around coronavirus-induced lockdowns across the country.

The real estate sector fell given most since REIT stocks are ex-distribution today.  Energy was down nearly 1.7%. Viva Energy dipped 2.6% and Beach Energy dropped 2.3%. Resources also fell over 1%.

Zip rose 3% and Afterpay added 2%.

Health Care and Industrials were up 0.3% and 0.9%, respectively.

The broader All Ordinaries index was down 0.64%, while the ASX 200 VIX Index was down 4.076%.

Source: ASX website; as of 10:30 AM (AEST)

Bonds and dollar

The Australian 10-year bond yield was trading 3.93% lower, at 1.491. The benchmark 10-year US bond yield was last down 5.4 basis points, at 1.4816%.

The commodity-price sensitive Australian dollar was trading 0.10% lower, at 0.7561. The US dollar index edged a little higher by 0.05%, to 91.898 on Monday.

Source: © Rawpixelimages    | Megapixl.com

Commodity update

Crude oil prices fell as much as 2% to a one-week low in the overnight trade, after hitting their highest since 2018 earlier in the session. Brent futures fell US$1.50, or about 2.0%, to close at US$74.68 a barrel, while West Texas Intermediate (WTI) crude futures were down US$1.14, or 1.5%, to US$72.91.

While Brent oil futures were trading 0.03% lower, at US$74.04, WTI futures were trading 0.18% lower, at US$72.78.

                       

The Opening Bell || How Virus Woes Are Impacting ASX 200 Performance During Early Trades?

 

On Monday, gold traded sideways as investors were caught between expectations of an early interest rate hike by Fed and fears of a surge in the highly contagious Delta variant of the coronavirus. The US gold futures closed the session 0.2% up, at US$1,780.70 an ounce.

Gold futures were trading 0.24% lower, at US$1,776.25.

Metals’ update

The most active September month iron ore futures contract on China's Dalian Commodity Exchange ended 2.1% higher at 1,196 yuan (US$185.31) per tonne, up for a fourth straight session.

The benchmark three-month copper on the London Metal Exchange (LME) fell 0.2% to US$9,397.50 per tonne by 1620 GMT.

Copper futures were trading 0.17% lower, at US$4.2715.

Source: © Herrbullermann  | Megapixl.com

READ MORE: Which stock has paid the highest dividend in 2021?

Newsmakers

Medibank (ASX:MPL) announced a return of nearly AU$105 million in COVID-19 permanent net claims savings to customers through premium relief.

Genworth Mortgage Insurance (ASX:GMA) said that it was working with Commonwealth Bank of Australia to extend its lenders mortgage insurance (LMI) agreement beyond its current expiry in December 2022.

Kathmandu (ASX:KMD) said that the group total sales for the financial year 2021 would be lower-than-expected due to COVID-19 related challenges. The total sales would be AU$930 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was estimated at AU$120 million.

360 Capital (ASX:TGP) said that it has sold its entire stake in E&P Financial Group for AU$29.9 million.

The securities of Sayona Mining (ASX:SYA) will be placed in a trading halt, pending an announcement.

READ MORE: 4 ASX-listed stocks with dividend yield over 5%

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK