ASX Tipped to Fall Amid Oil Price Woes

April 21, 2020 Updated: April 21, 2020

Trade on the Australian share market is likely to be marred by more losses in oil prices, as demand plunges due to the COVID-19 pandemic.

The SPI 200 futures contract was down 109 points, or 2.1 percent, at 5,090.0 at 0800 AEST on April 22 following heavy losses overnight on Wall Street.

The S&P 500 lost 3.1 percent for its worst drop since April 1.

Losses were widespread, with 94 percent of stocks in the index down.

This followed similar declines across Europe and Asia.

The cost for a barrel of US oil to be delivered in June plunged 43 percent overnight to $US11.57 dollars.

A day earlier, oil futures fell below zero for the first time.

Fewer people are driving and flying due to travel restrictions in many countries designed to slow the spread of the virus.

The S&P/ASX200 benchmark index finished Tuesday trade down 131.7 points, or 2.46 percent, to 5,221.3 points.

The All Ordinaries index ended the day lower by 134.5 points, or 2.45 percent, to 5,353.0 points.

Australian Bureau of Statistics data indicated the number of Australians with a job had fallen by 6.0 percent since the COVID-19 crisis began.

The Australian dollar was buying 62.86 US cents at 0800 AEST, down from 63.22 US cents at Tuesday’s close.

By Steven Deare