Australian Market Sharply Lower, Down 2%

The Australian stock market is sharply lower on Tuesday, extending the sharp losses in the previous two sessions, with the benchmark S&P/ASX 200 falling below the 7,000 mark, following the sell-off on Wall Street overnight, fueled largely by weakness in materials and energy stocks amid tumbling commodity prices. Technology stocks are also mirroring their peers lower on tech-heavy Nasdaq.

The coronavirus outbreak and related shutdowns across dozens of Chinese cities as well as rising prospects of sharper and faster interest rate hikes to reign in persistent inflation also weighed on market sentiment.

The benchmark S&P/ASX 200 Index is losing 156.10 points or 2.19 percent to 6,964.60, after hitting a low of 6,939.50 earlier. The broader All Ordinaries Index is down 167.70 points or 2.28 percent to 7,190.20. Australian stocks closed significantly lower on Monday.

Among the major miners, OZ Minerals and Mineral Resources are slipping almost 5 percent each, while Rio Tinto is plunging more than 6 percent, Fortescue Metals is declining almost 6 percent and BHP Group is sliding more than 4 percent.

Oil stocks are lower, with Beach energy plunging almost 7 percent, Origin Energy declining more than 4 percent, Santos losing almost 4 percent and Woodside Petroleum is slipping more than 3 percent.

Among tech stocks, Appen is losing almost 5 percent, Block is plummeting almost 11 percent, WiseTech Global is declining more than 5 percent, Zip is slipping more than 4 percent and Xero is down more than 1 percent.

Gold miners are lower. Newcrest Mining and Evolution Mining are losing 3.5 percent each, while Gold Road Resources and Resolute Mining are slipping more than 6 percent each. Northern Star Resources is declining 4.5 percent.

Among the big four banks, Commonwealth Bank and National Australia Bank are losing more than 1 percent each, while ANZ Banking is down almost 2 percent and Westpac is edging down 0.5 percent.

In the currency market, the Aussie dollar is trading at $0.691 on Tuesday.

On Wall Street, stocks showed another substantial move to the downside during trading on Monday following the sharp pullback to close out the previous week. With the continued sell-off, the tech-heavy Nasdaq tumbled to its lowest closing level since November 2020, while the Dow and the S&P 500 also hit one-year closing lows.

The major averages saw continued weakness going into the close, ending the session near their worst levels of the day. The Dow slumped 653.67 points or 2 percent to 32,245.70, the Nasdaq plummeted 521.41 points or 4.3 percent to 11,623.25 and the S&P 500 plunged 132.10 points or 3.2 percent to 3,991.24.

The major European markets also showed significant moves to the downside on the day. While the French CAC 40 Index dove by 2.8 percent, the U.K.'s FTSE 100 Index and the German DAX Index slumped by 2.3 percent and 2.2 percent, respectively.

Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.

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