Shares on the Australian market are set to fall after concerns world economies could be reopening too soon caused losses on Wall Street overnight.

The SPI 200 futures contract was down 68 points, or 1.26 per cent, to 5,320.0 at 0700 AEST on Wednesday, indicating a loss in early trade.

The S&P 500 dropped 2.1 per cent as investors debate whether the lifting of lockdowns across US states and the world will drive an economic rebound or more coronavirus infections.

The concerns were summed up in testimony from the top US infectious diseases expert. Dr Anthony Fauci told Congress that if the US reopens too soon, it could not only cause “some suffering and death that could be avoided, but could even set you back on the road to try to get economic recovery.”

In Australia on Tuesday, the benchmark S&P/ASX200 index closed down 58.2 points, or 1.07 per cent, at 5,403 points.

The All Ordinaries closed down 61.8 points, or 1.11 per cent, at 5,497.3 points.

One Australian dollar was buying 64.72 US cents at 0700 AEST, up from 64.70 US cents at the close of trade on Tuesday.