ASX down on EU lockdown fears
The Australian share market is set for another rocky day of trade, after Wall Street closed lower on European lockdown fears and delays in fresh stimulus from Congress.
The benchmark S&P/ASX200 (^AXJO) was down nearly 1 per cent to 5,774.10 points at 10:10 AEST, while the broader All Ordinaries index (^AORD) was 0.86 per cent lower to 5,961.60 points.
It comes as the Australian share market hit its lowest level since June during session troughs on Monday, bottoming at 5,808.2 points. It pared back some of its losses to finish down 0.7 per cent to 5,822.6 points.
Reserve Bank deputy governor Guy Debelle will address an Australian Industry Group conference on Tuesday, to speak about the Australian economy and monetary policy.
Debelle is expected to provide some clarity on whether the central bank expects to take any action on interest rates as Australia battles its first recession in nearly 30 years.
What happened overnight?
Wall Street’s major bourses closed lower over concerns about new lockdowns in Europe and delays in a stimulus bill.
Congress has remained in a stalemate over the size of another Covid-19 stimulus bill, and the death of US Supreme Court Justice, Ruth Bader Ginsburg, could make the passage of a bill even less likely.
QMA portfolio manager Ed Campbell told AAP that election jitters were also weighing down the market, and the possibility that there could be a contested or delayed outcome.
The Dow Jones Industrial Average fell 1.84 per cent to close at 27,147.7, the S&P 500 lost 1.16 per cent to 3,281.06 and the Nasdaq Composite dropped 0.13 per cent to 10,778.80.
With AAP.
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