Australia Stocks extend losses

The Australian share market finished session down on Monday, 20 July 2020, as investors continued withdrawing profit off the table amid concerns over rising coronavirus cases. At closing bell, the benchmark S&P/ASX200 index fell 32.06 points, or 0.53%, to 6,001.57. The broader All Ordinaries dropped 32.60 points, or 0.53%, to 6,112.27.

Australia's Victoria state reported a record daily increase in COVID-19 cases while New South Wales said it was tightening some restrictions as authorities struggle to contain a new outbreak. Australia's acting chief medical officer said the outbreak in Victoria state could take weeks to subside despite a lockdown and orders to wear masks. Victoria reported a daily record of 438 new COVID-19 cases on Friday, most of them from Melbourne, while New South Wales saw 18 new infections on Sunday, its highest in three months.

Shares of energy sector declined as West Texas Intermediate oil dropped for the third day in a row down to $US40.34 per barrel. Oil producer Woodside dropped 2.6%, Origin Energy fell 2.1%, Santos fell 3.5%, and Beach Energy dropped 3.3%. Petrol retailer Viva Energy declined 5.7% and Ampol declined by 2.8% as COVID-19 spread increased the chances of more lockdowns around Australia.

Financials were also under pressure. The big four banks all dropped around 1% while Bendigo & Adelaide bank declined 5% to a six-week low of A$6.77.

CURRENCY NEWS: The Australian dollar touched the 0.70 level briefly in the morning, before falling back to 0.6983.

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