Australia: Stocks tumble on rising virus cases

The Australian share market finished session steep lower on Monday, 29 June 2020, on tracking Wall Street's sharp retreat last Friday after several U.S. states imposed business restrictions to tackle resurgence in new coronavirus cases. Meanwhile selloff was fueled further as expectations for a quick recovery of the global economy waned after the number of confirmed COVID-19 infection cases across the globe topped the 10 million mark over the weekend. Further denting investor sentiment was reports that the Phase 1 U.S.-China trade deal could be at risk.

At closing bell, the benchmark S&P/ASX200 index tumbled 89.05 points, or 1.51%, to 5,815.03. The broader All Ordinaries tanked 96.16 points, or 1.6%, to 5,915.65.

 

Investors risk sentiments dampened as the global death toll from COVID-19 reached half a million people on Sunday as the number of infections crosses 10 million, with one quarter of those in the United States, where cases have surged in a handful of southern and western states. In the U.S., coronavirus cases recently surged by more than 45,000 in a day, according to John Hopkins University data. The recent spike in cases stateside has led some states such as Texas and Florida to re-close some businesses.

The major bank stocks finished lower, with NAB shares losing 1.6%, while shares in Bank of Queensland fell 3.4%.

Energy was one of the worst-performing sectors, as oil prices declined Brent crude had fallen 2% to $US40.19 a barrel. Shares in Santos (-3.1%), Beach Energy (-5.6%), Origin Energy (-4.4%) and Worley (-4.8%) closed lower.

CURRENCY NEWS: The Australian dollar changed hands at $0.6881 after touching an earlier low of $0.6842.

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