Australia Stocks tumble on concerns over virus resurgence

The Australian share market finished session in the red on Friday, 10 July 2020, as resurgence of COVID-19 cases at home and abroad stoked worries that the quick economic recovery from the pandemic being hampered.

At closing bell, the benchmark S&P/ASX200 index inclined 35.15 points, or 0.59%, to 5,955.46. The broader All Ordinaries added 40.63 points, or 0.67%, to 6,074.94.

More than 60,500 new COVID-19 infections were reported across the United States on Thursday, the largest single-day tally record, stoking fears that new lockdowns could take a toll on the economic recovery. The World Health Organization said that though the virus, which has infected more than 12 million globally, can be brought under control, it's getting worse in most of the world.

Australia Prime Minister Scott Morrison said today that Australia will reduce to half the number of citizens allowed to return home from overseas each week. The decision comes as health authorities struggle to contain new cases of the coronavirus in Australia's second-most populous state Victoria. Due to a sudden rise in the infection, Victoria reimposed confinement measures in Melbourne on July 9 for at least six weeks to curb the transmission. As many as 5 million have been forced to adhere to the stay-at-home measures after new surge in Australia. However, the essential businesses were exempted from the protocol in view of economic recovery as authorities grappled to contain the fresh clusters of COVID-19 outbreak.

Shares of energy subindex was the worst-performing sector on the benchmark index, as oil prices were hurt by fears that renewed lockdowns would suppress fuel demand. Explorer Woodside Petroleum fell more than 2.3% and Papua Guinea-focused Oil Search lost 4.2%.

The major mining stocks were mostly lower, including Rio Tinto (-0.7%), South32 (-2.4%) and BHP (-0.7%).

CURRENCY NEWS: The Australian dollar fell steadily through the day and was 0.5% weaker against the greenback, buying 69.3 US cents late afternoon today.

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