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ASX Dips in the Open

The Australian Securities Exchange (ASX) has worsened its decline during midday trade. The benchmark S&P/ASX200 (^AXJO) has sunk lower today, down 0.89 percent to 5358.80 at time of publication.

The All Ordinaries index (^AORD) has also fallen further, dropping 0.75 percent to 5436.80.

Retail spending figures show an 8.5 percent increase last month, which was higher than market predictions. February showed a 0.6 percent increase in spending, taking the nations retail spending to AUD$30.11 billion after the March boost.

The ASX200 fell at the open after American markets were seen to have softened overnight, slipping 0.26 percent to 5392.90 as of 10.10am AEST. At the same time the All Ordinaries has dipped 0.29 percent to 5462. The morning trade slump came ahead of figures from the Australian Bureau of Statistics regarding lending and retail trade indicators.

Even though Wall Street’s main indexes closed in the green due to an oil price and healthcare stocks rally, they subsequently retracted in response to the US Federal Reserve reflecting upon the American economy in less than favourable terms.

“We’re living through the most severe contraction in activity and surge in unemployment that we’ve seen in our lifetimes,” US Federal Reserve vice chair Richard Clarida said in a recent interview with CNBC.

A large majority of US investors are sitting on the sidelines, monitoring the re-opening of states in order to see the medium-term economic impact of lockdowns being reinstated and maintained.

The Dow Jones Industrial Average rose 133.33 points, or 0.56 per cent, to 23,883.09, the S&P 500 gained 25.7 points, or 0.90 per cent, to 2868.44 and the Nasdaq Composite added 98.41 points, or 1.13 per cent, to 8809.12.

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