An already-bruised Australian share market is ignoring a lead from Wall Street and a commodity price rebound to dive lower at the open, with the banks and miners weighing heavily amid broad-based losses.
Healthcare is the only sector in the green during early trade, with shares in energy, industrials, infotech, and utilities all plunging.
The benchmark S&P/ASX200 index is down 52.9 points, or 0.9 per cent, to 5842.8 points at 1030 AEDT on Monday, off the back of its worst week in three years.
The broader All Ordinaries is down 51.4 points, or 0.86 per cent, at 5955.2, while the Australian dollar is buying 71.07 US cents, down from 71.26 on Friday.
The US benchmark S&P 500 had snapped a six-day losing streak on Friday, with investors looking for bargains ahead of the third quarter earnings reporting season, while the Nasdaq and Dow also finished the session higher.
But analysts warned that until the US and China reach a trade deal, the rebound in the stockmarket could be vulnerable with investors anxious about the impact of tariffs on corporate profits.
The late-week lift certainly didn’t translate to gains for local stocks, with the financial sector a particular drag at Monday’s open as Australians continue to punish the banks for the misconduct uncovered by the royal commission.
The sector was 1.35 per cent down – with ANZ and NAB leading the losses for the big four banks – down 1.43 and 1.41 per cent respectively.
Commonwealth Bank shares were down 1.3 per cent to $66.16 and Westpac stocks fell 1.13 per cent to $26.15 – with both companies coming off their second worst week in eight months.
Gold miners added rare lustre to the local market last week, but the shine has rubbed off as gold prices dip on a strengthening US dollar and recovering global stocks.
Gold miners recorded early losses of between 0.28 and 2.52 per cent, the exception being Northern Star, with a 0.61 per cent gain to $9.005.
The whole sector was down 1.4 per cent at the open despite climbing copper and iron ore prices, with giant BHP shedding 1.54 per cent to $33.32 and Ro Tinto losing 1.45 per cent to $76.90.
Energy stocks are also down despite a slight jump in the oil price, while infotech and industrials have lost more than one per cent, and utilities nearly two per cent in what looks to be another day in the doldrums for the local market.
However, healthcare shares have gained 1.27 per cent, largely on the back of sector giant CSL limited, which was up 2.1 per cent to $192.86 early on.
Meanwhile, Coles has announced its supermarket sales have jumped during the first quarter, as preparations continue for a vote on the chain’s proposed demerger.
Atlas Iron has also named Sanjiv Manchanda as chief executive in a board overhaul, replacing Cliff Lawrenson amid an acquisition by billionaire Gina Rinehart’s Hancock Prospecting.