The Australian market has opened lower on Wednesday morning following another volatile trading session in the US overnight.
The S&P/ASX 200 Index fell by 37.5 points, or 0.5 per cent, to 7,822.9 points as of 11.00am AEDT, following a 0.1 per cent gain on Tuesday. The Australian dollar was trading at 63.61 US cents.
Wall Street continues to be volatile.Credit: AP
All eleven of the industry sectors were lower in early trade with the utilities and real estate sectors leading losses. Energy companies fell, with Origin (down 1.2 per cent), Meridian Energy (down 0.8 per cent) and AGL (down 1.4 per cent) all retreating. Property giant Goodman Group lost 1.6 per cent.
The directors of embattled tech group WiseTech Global confirmed on Wednesday morning that company founder and executive chairman Richard White misled the board about his personal relationships, which have thrown the $28 billion group into turmoil, but said his job remains secure. WiseTech shares are 0.8 per cent higher.
The miners had a mixed morning, with falls from BHP (down 0.3 per cent), Rio Tinto (down 0.4 per cent) and Fortescue (down 1.8 per cent) on the back of declining iron ore prices. Northern Star Resources and Newmont Corporation were in the green after gold prices strengthened yet again overnight. Mineral Resources fell by 6 per cent after a road train accident prompted a temporary pause to operations on its Onslow Iron haul road.
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All four of the big banks were trading lower, with the nation’s biggest lender CBA leading losses and falling by 0.6 per cent. Insurance companies had a better start to the day, with QBE Insurance (up 2.3 per cent) and Insurance Australia Group (up 0.7 per cent) both lifting.
Consumer electronics retailer JB Hi-Fi rose by 2.7 per cent in morning trade, but Myer slumped by 4 per cent after posting flat sales in its half-year results.
Overnight in the US, The S&P 500 dropped 1.1 per cent for its latest swerve in a scary ride, where it tumbled by 10 per cent from its record and then rallied for two straight days. The Dow Jones fell 260 points, or 0.6 per cent, and the Nasdaq composite sank 1.7 per cent.
