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ASX to fall after late turn on Wall Street

Australian shares are likely to drop in early trade after US markets finished lower following California’s decision to extend closures of indoor venues to slow the spread of coronavirus.

The Australian SPI 200 futures contract was lower by 45.0 points, or 0.76 per cent, to 5892.0 points at 0800 AEST on Tuesday.

California, which accounts for 15 per cent of the US economy, contributed to the late turn in the markets.

Selling accelerated after its Governor ordered a scaling back of the state’s reopening, shutting bars and banning indoor restaurant dining statewide and closing churches, gyms and hair salons.

Also adding to nervousness in the market was the White House’s decision to reject nearly all Chinese claims in the South China Sea.

The Dow Jones Industrial Average ended 0.04 per cent higher at 26,085.8 points, while the S&P 500 lost 0.94 per cent to 3,155.22. The Nasdaq Composite dropped 2.13 per cent, to 10,390.84.

Oil prices also slipped about 1 per cent after the World Health Organisation reported more than 230,000 new cases of coronavirus on Sunday, a one-day record.

US West Texas Intermediate (WTI) crude was at US$40.10 per barrel.

In Australia today, weekly jobs and wages data is due from the Australian Bureau of Statistics and will provide an update of how the economy is coping amid the pandemic.

Overseas travel data for June will also be published, which will likely be grim reading for workers in the travel industry.

The benchmark S&P/ASX200 index finished Monday up 59.3 points, or 0.98 per cent, at 5,977.5 points, while the All Ordinaries index gained 53 points, or 0.88 per cent, at 6,089.3.

The Australian dollar was buying 69.43 US cents at 0800 AEST, lower from 69.75 US cents at the close of trade on Monday.

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