Australian Stork Market Face a Set Back with Low Commodity Prices and Subdued Global Growth Outlook

Australian Stork Market Face a Set Back with Low Commodity PricesConcerns regarding the health of global economic growth and low commodity prices are reason behind the set back in the Australian stock market. On Wednesday, it opened significantly lower after an unenthusiastic guidance from Wall Street.

The S&P ASX 200 index opened 1.1 percent down at 5,298.1 points. The benchmark lost 60.60 points or 1.13 percent in the late-morning trading.

The mining sector looks grim with BHP Billiton dropping about eight percent and Rio Tinto slipping about five percent. Fortescue Metals was about four percent lower. Newcrest Mining, the gold mining company lost two percent and Evolution Mining also lost approximately three percent. Gold prices slipped overnight.

In oil sector things did not appear too bright either. Oil Search and Woodside Petroleum slipped about two percent with Santos is dropping three percent or more with crude oil prices dropping suddenly overnight with renewed worries about oversupply.

Data from the oil industry reveals that crude output from the Middle East oil producing countries climbed in April and might continue the trend in the near future. Moreover, it is expected that a report from the US government which is scheduled on Wednesday will indicate that crude stockpiles in the nation have reached a record high.