Australia's main stock index fell on Wednesday as prospects of a deep global recession and its impact on the demand for crude oil hammered energy stocks and offset better-than-expected trade data from China, the country's biggest trading partner.
The benchmark S&P/ASX 200 index fell 0.3 per cent by 0039 GMT, with a 3.4 per cent drop in energy stocks weighing the most. If current levels hold, the energy sub-index is on course for its worst day in nearly two weeks. Oil prices slid sharply amid persisting worries that even the record output-cut deal signed by major producers this week would not be enough to cushion a coronavirus-induced hit to demand.
"The deal in its current format sorely disappointed relative to market expectations even if executed to the letter," said Stephen Innes, chief global markets strategist at AxiCorp. "Markets believe the deal won't come close to offsetting demand devastation and isn't even large enough to eat into what's in storage."