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MELBOURNE - The Australian stock market closed in negative territory amid lingering fears the United States is heading for a recession.
At the close, the benchmark S&P/ASX200 index was down 62.5 points at 6290.7, while the All Ordinaries lost 61.5 points to 6372.6.
Macquarie Equities client adviser David Halliday said the local bourse was starting to factor in the possibility of a recession in the US.
"The higher oil price and economic data is certainly making more people think about the prospect of a recession in the US, and if that is the case, it is bad news for equity markets around the world," Halliday said.
On Wall Street overnight, the Dow Jones industrial average fell 220.86 points to close at 13,043.96.
Locally, however, the gold and energy sectors reversed the negative trend after record commodity prices overnight.
Newcrest added A$3.45 to close at a record A$37.25, Lihir put on 21 cents to A$3.82 and Newmont gained 23 cents to A$5.85 after the gold price hit US$860.10 overnight.
The energy sector was buoyed by an oil price that touched US$100 a barrel overnight, with Woodside putting on 81 cents to A$51.76, Santos gaining 40 cents to A$14.72 and Oil Search picking up 16 cents to A$5.01.
- AAP
