Australia: Shares drop nearly 2% as overnight oil crash curbs risk appetite

Australian shares fell almost 2 per cent on Wednesday, dragged by energy stocks as a rout in crude oil prices overnight underscored fears of a severe economic fallout from the coronavirus pandemic and fuelled broad risk-off sentiment.[BENGALURU] Australian shares fell almost 2 per cent on Wednesday, dragged by energy stocks as a rout in crude oil prices overnight underscored fears of a severe economic fallout from the coronavirus pandemic and fuelled broad risk-off sentiment.

The S&P/ASX 200 index fell 1.8 per cent to 5,127.5 by 0020 GMT, after having hit its lowest level in more than two weeks earlier in the session. Brent oil futures were trading nearly 2 per cent higher, after two of the most turbulent days in the history of oil trading as markets reeled in the face of a supply glut and an almost complete erosion of demand due to coronavirus-induced lockdowns.

"Dislocations within the physical market for North American oil will cause exceptionally high short-term price volatility," analysts at Moody's Investors Service said. Energy stocks were the top losers on the main Aussie bourse with a drop of 3.5 per cent. The sub-index has slumped more than 10 per cent so far this week on falling oil prices.

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Australia: Shares end lower with energy stocks battered by plunging crude futures[SYDNEY] Australian shares finished lower on Monday weighed by energy stocks, as concerns over a slump in oil demand due to the coronavirus pandemic drove the energy sub-index to its worst session in more than three weeks. Read more at The Business Times.
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