Australia Stocks mixed on renewed COVID-19 pandemic outlook

The Australian share market finished session mixed on Monday, 22 June 2020, as ongoing worries regarding the COVID-19 pandemic kept investors on edge. At closing bell, the benchmark S&P/ASX200 index rose 1.97 points, or 0.03%, to 5,944.54. The broader All Ordinaries fell 3.66 points, or 0.06%, to 6,057.96.

The Australian market commenced trading with a soft note on tracking weak lead from Wall Street last Friday as the World Health Organization has warned of a "new and dangerous phase" of the pandemic, with people tiring of lockdowns despite the virus's accelerating spread.

Sentiment was also weighed by spike in coronavirus infections pushed Australia's second- most populous state, Victoria, to extend its state of emergency for four more weeks to July 19 on Sunday.

ECONOMIC NEWS: Low Interest Rates To Remain For Years, Says RBA's Lowe- Reserve Bank of Australia Governor Philip Lowe said the interest rates are set to remain at the current record lows for years to come. Further, he said it is hard to argue that the Australian dollar is overvalued. The recent rise in the Australian dollar against the US dollar was a reflection of the nation's coronavirus pandemic outperformance, Lowe said. The RBA had reduced the key interest rate to the current record low of 0.25 percent at the March meeting. Also in March, the bank had introduced asset purchase programme to combat the downturn caused by the pandemic.

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