ASX 200: Will COVID-19 concerns weigh on the market today?


  • The ASX 200 futures index is indicating a lower opening of around 1.1% or 78 points.
  • Concerns over rising COVID-19 cases in India continued to weigh on the oil market.
  • The dollar index ticked up 0.166%, after touching its lowest level in nearly seven weeks.

On Tuesday, the Australian market broke its five-day winning streak and closed the session 0.68% down at 7017.8. However, the market has still sustained above the major support level of 7,000 mark. Today, investors need to be cautious as the ASX 200 futures index is indicating that it is set to open lower by a sizable 1.1% or 78 points.

Image Source: ID 181713195 © Scaliger |

Major stock market indices across the world fell on Tuesday and oil prices also witnessed selling as concerns continued to mount the rising global COVID-19 cases and their effect on the global economic rebound.

The lower opening could be attributed to the weak closing of the US markets. On Tuesday, the Dow Jones shed 0.75%, closing below the 34,000 mark at 33,821.3, while the S&P 500 was down by 0.68%. The NASDAQ closed the trading session at 13,786.28, losing 0.92%.

On Wall Street, travel stocks weighed on sentiment leading to a sharp fall in cruise operators and airline stocks.

Read More: Why ASX200 could not hold on to fresh 52 week-high today

India reported its highest daily toll, at 1,761 deaths from COVID-19 on Tuesday, while Canada and the United States extended land-border closures for non-essential travelers.

The dollar index notched up 0.166%, after touching its lowest level in nearly seven weeks and the US Treasury yields fell, though they still traded above last week's more than one-month lows. The Australian dollar fell sharply from the day’s high, closing 0.4% lower at 0.7722.

The Benchmark 10-year Treasury notes last rose 11/32 in price to yield 1.5624%, from 1.599% late on Monday.

Image Source: ID 110232820 © Jirkaejc |

Bitcoin (BTC) last rose 2.4% to US$57,030.36, after recovering from the day’s low of US$53,430.01. Another hot cryptocurrency these days, Dogecoin crashed over 31% to US$0.280.   

Read More: Dogecoin Roars On Elon Musk & Snoop Dogg Tweets

Crude oil prices traded lower

The concern over rising COVID-19 cases in India continued to weigh on the oil market. Given India's position as a major crude oil importer, new economic restrictions would heavily dent the demand for crude oil.

The WTI crude fell 1.21% to US$62.44 per barrel while Brent crude was at US$66.50, down 0.82% on Tuesday.

Image Source: ID 7399303 © Rizami |

The Energy sector index could trade lower as global cues aren’t looking good for the energy producers. These companies include Beach Energy Limited (ASX:BPT), Origin Energy Limited (ASX:ORG), Oil Search Limited (ASX:OSH) and Whiteheaven Coal Limited (ASX:WHC)

Gold prices saw an uptick

Spot gold added 0.5% to US$1,778.80 an ounce while Silver gained 0.07% to US$25.83. The surge in the global cases of coronavirus which might lead to longer than expected economic recovery, is attracting demand for the safe heaven metal.

Image Source: ID 1903797 © Anchesdd |

Australian gold miners such as Silver Lake Resources Limited (ASX:SLR), Perseus Mining Limited (ASX:PRU), Northern Star Resources Limited (ASX:NST) and Newcrest Mining Limited (ASX:NCM) could attract some investors’ interest today.

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