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Australia Market tumbles on COVID-19 second wave fear

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Capital Market
Last Updated : Jun 15 2020 | 2:31 PM IST
The Australian share market finished session lower on Monday, 15 June 2020, as fears of a second wave of coronavirus infections amid easing of lockdowns across the world. Denting sentiment further was Prime Minister Scott Morrison confirmation that Australia will record budget deficits this year and next following spends on a big stimulus and infrastructure to aid its economic recovery.

At closing bell, the benchmark S&P/ASX200 index tumbled 128.01 points, or 2.19%, to 5,719.80. The broader All Ordinaries dropped 129.94 points, or 2.18%, to 5,830.00.

Investors chose to play safe at the start of the week on renewed concerns over a second wave of infections as clusters of new infections were reported in the US and China. Beijing on Monday reported its second consecutive day of record numbers of COVID-19 cases, while new cases and hospitalisations in record numbers swept through more U.S. states.

Meanwhile, underwhelming data from China also weighed on investor sentiment. China's industrial output rose 4.4% in May from a year ago, less than expected, while retail sales fell a larger-than-expected 2.8% in a sign of weak domestic demand.

Financial stocks shed, with the Big Four lenders falling in range of 1% to 3%.

Energy stocks dropped after oil prices weakened on virus-led demand concerns. Shares of Woodside Petroleum and Santos shed 3.3% and 4%, respectively.

CURRENCY NEWS: The Australian dollar changed hands at $0.6824 after last week's slip from levels above $0.693.

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First Published: Jun 15 2020 | 2:11 PM IST

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