Australian Market Extends Losses

(RTTNews) - The Australian stock market is extending losses on Tuesday from the previous sessions following the overnight sell-off on Wall Street amid worries about a resurgence in coronavirus cases in the U.S. as well as Europe and on fading hopes for U.S. stimulus before next week's presidential elections.

The benchmark S&P/ASX 200 Index is declining 71.10 points or 1.16 percent to 6084.50, after touching a low of 6,068.30 earlier. The broader All Ordinaries Index is down 77.50 points or 1.22 percent to 6,279.80. Australian stocks closed modestly lower on Monday.

Among the major miners, Fortescue Metals is losing more than 2 percent. while BHP Group and Rio Tinto are declining more than 1 percent each.

Oil stocks are also weak after crude oil prices fell to a three-week low overnight. Santos is tumbling more than 3 percent, while Woodside Petroleum and Oil Search are lower by more than 2 percent each.

In the banking space, Commonwealth Bank, National Australia Bank, ANZ Banking and Westpac are lower in a range of 0.1 percent to 0.8 percent.

Gold miners are mixed after gold prices edged higher overnight. Newcrest Mining is adding 0.1 percent, while Evolution Mining is down 0.2 percent.

On Wall Street, stocks closed sharply lower on Monday amid concerns about a resurgence in coronavirus cases, with new infections reaching a new record high last Friday. The spike in new coronavirus cases comes as lawmakers in Washington appear to remain at an impasse over a new stimulus bill. Negotiations continue, but traders appear pessimistic that an agreement on a new relief package will be reached before next week's elections.

The Dow plunged 650.19 points or 2.3 percent to 27,685.38, the Nasdaq slumped 189.34 points or 1.6 percent to 11,358.94 and the S&P 500 tumbled 64.42 points or 1.9 percent to 3,400.97.

The major European markets also moved to the downside on Monday. The German DAX Index plunged by 3.7 percent, while the French CAC 40 Index slumped by 1.9 percent and the U.K.'s FTSE 100 Index fell by 1.2 percent.

Crude oil futures fell to their lowest level in three weeks on Monday as rising worries about the outlook for energy demand weighed on prices. WTI crude for December ended down $1.29 or about 3.2 percent at $38.56 a barrel, the lowest close since October 2.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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