Aussie share market hits two-week low as US oil futures collapse

The Australian share market has plunged for a second day, falling to nearly a two-week low as US oil futures collapsed into negative territory.

The S&P/ASX200 benchmark index closed Tuesday down 131.7 points, or 2.46 per cent, to 5,221.3 points, while the All Ordinaries index was down 134.5 points, or 2.45 per cent, to 5,353.0 points.

The Australian dollar was buying 63.22 US cents, down from 63.62 US cents at Monday's close.

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RBA Governor Philip Lowe said easing COVID-19 restrictions will undoubtedly help the economy though moving too quickly could entrench an already disastrous decay in jobs, wages, inflation, and growth.

The Reserve Bank says the economy could start to bounce back in the September quarter as government begins to ease coronavirus restrictions towards the middle of the year.

However, if the restrictions stay in place longer, or they have to be reimposed due to an unexpected increase in coronavirus cases, the recovery will be delayed and interrupted.

"In that case, the loss of incomes and jobs would be even more pronounced," Dr Lowe said in a speech in Sydney on Tuesday.

Dr Lowe said a gradual easing of COVID-19 quarantine measures by the end of the year - except perhaps international travel - could plausibly set the economy up to grow by between 6.0 per cent to 7.0 per cent in 2021.

He expects GDP to fall by about 6.0 per cent in 2020 before bouncing back.

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