ASX 200 today:  Why market is on track to mark worst session since February

Summary

  • The Australian shares opened lower on Wednesday after rising in the last three sessions.

  • The domestic equity benchmark ASX 200 opened lower by 17.60 points or 0.25% to 7,048.40.

  • The benchmark traded in the negative zone, tracking weak overnight cues from US stock market.

The ASX 200 opened lower on Wednesday, tracking weak overnight cues from the US stock market overnight. The Australian shares dropped the most in nearly three months, with energy, materials and information technology being the top drags in the early trade. The domestic equity benchmark opened lower by 17.60 points or 0.25% to 7,048.40.

On Tuesday, the ASX 200 index ended 0.6% higher at 7,066.

Meanwhile, on Tuesday, the Dow Jones shed 0.78%, to 34,060.7, while the S&P 500 lost 0.85%, to 4,127.8. The NASDAQ Composite was down by 0.56%, to 13,303.65.

Source: © Stbernardstudio   | Megapixl.com

What happened in the early trade?

By 10:37 AM (AEST), the ASX 200 fell 1.7% to 6,943.9, snapping a three-day winning streak, and was on track to mark its worst session since 26 February.

A measure of Australian consumer sentiment fell in May to break a three-month winning streak, with the measure of family finances compared with a year ago down 5.4%.

Among sectors, miners fell as much as 2.8%, even as Chinese iron ore futures rose overnight. Global miner Rio Tinto fell 3%, while larger peer BHP Ltd fell 2.5%.

The heavyweight financial sector eyed its worst session in a week, with all the "Big Four" banks trading in the red.

Energy stocks were the biggest losers on the benchmark index, snapping a four-session rally, as oil prices dropped overnight.

Woodside Petroleum fell 1.6%, while Santos lost as much as 2.9%.

Gold stocks also saw losses, with sector heavyweight Newcrest Mining on track to record its worst day in nearly three weeks.

                       

Why ASX slipped below 7,000 mark at open?

 

Australian dollar

The Australian dollar, a commodities currency, traded higher 0.03% to 0.7785. On Tuesday, the US dollar index fell 0.463%.

READ MORE: Three ASX shares that are trading at a bargain

How are bond yields moving?

The Australian bond yields traded down 0.17% to 1.786. The yield on the benchmark 10-year US Treasury notes fell to 1.637%.

READ MORE: Three ASX-listed retail shares going great guns in 2021

Gold rises, crude oil falls

The gold prices closed in on a four-year high due to weakness in US dollar and fall in Treasury yields. On Tuesday, the spot gold price was up 0.1% to US$1,869.40 an ounce.

The Gold Futures were trading higher by 0.05% to US$1,868.85.

READ MORE: Which are the ten best-suitable countries for renewable energy investment?

The crude oil prices fell after hitting two-month highs. While the WTI crude oil price was down 1.2% to US$65.49 a barrel, the Brent crude oil price has fallen 1.05% to US$68.74 a barrel. 

The Crude Oil WTI Futures were trading down by 0.76% to US$65.02.

READ MORE: How is Australia tackling the climate change crisis?

Source: ©  Ptlee  | Megapixl.com

Newsmakers

In the twelve months to the end of June 2020, Webjet (ASX:WEB) reported a revenue of AU$266.9 million.

United Malt Group’s (ASX:UMG) revenue fell by 11% to AU$590 million, as coronavirus affected the volume and changes in mix in the company’s key geographies during the period. EBITDA was AU$52.7 million.

READ MORE: Solar Energy In Australia- Where Are The Pockets Of Opportunities?

Paradigm Biopharmaceuticals (ASX:PAR) said it has received first revenue through a physician prescription of Zilosul to patients.

While commenting in its first-half fiscal outlook, Eagers Automotive (ASX:APE) said that the company was in a strong financial position.  

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