Australia Market extends gain to third day

The Australian share market recovered after losing ground in morning trade today, Wednesday, 27 May 2020, as investors were emboldened on news of coronavirus vaccines and optimism about a re-opening of the world economy. However, concerns about rising tensions between the United States and China capped gains. Around late afternoon, the benchmark S&P/ASX200 index rose 26.25 points, or 0.45%, to 5,806.30. The broader All Ordinaries added 23.57 points, or 0.4%, to 5,913.50.

Market gains were supported by positive signs in the global economy and news of the gradual removal of economic restrictions related to COVID-19.

However, market gains capped amid concerns about worsening relations between the world's two biggest economies after U.S. President Donald Trump said late on Tuesday he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong, but gave no further details.

China's plans to impose national security laws in Hong Kong have triggered the first big street unrest in the Asian financial hub for the first time since last year. Overnight, hundreds of riot police took up posts around Hong Kong's legislature in anticipation of protests on Wednesday.

ECONOMIC NEWS: Australia Construction Work Dips 1% On Quarter In Q1-- Australia's total value of construction work done declined a seasonally adjusted 1% on quarter in the first quarter of 2020, standing at A$49.481 billion, following the 3% drop in the three months prior. On a yearly basis, total construction work was down 6.5%. The seasonally adjusted estimate of total building work done also fell 1.0% and was down 8% on year to A$28.924 billion in the first quarter of 2020. Residential building was down 1.6% on quarter and 12.5% on year to A$17.246 billion. Non-residential building was flat on quarter and eased 0.3% on year at A$11.677 billion. The seasonally adjusted estimate for engineering work done fell by 1.1% on quarter and 4.4% on year to A$20.556 billion in the quarter ended March 2020.

CURRENCY NEWS: The Australian dollar jumped to a three-month high (66.53 US cents) on Wednesday

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