ASX sinks as oil futures turn negative

The Australian share market is slightly lower at noon after US crude oil futures turned negative for the first time because of a coronavirus-induced supply glut.

The S&P/ASX200 benchmark index was down 36.4 points, or 0.68 per cent, to 5,316.6 points at 1200 AEST, with energy stocks and property trusts the dragging down the market.

The All Ordinaries index was down 40.1 points, or 0.74 per cent, to 5,374.6 points.

US crude oil futures collapsed below $US0 on Monday for the first time in history, and ended the day at minus $US37.63 a barrel as desperate traders paid to get rid of oil.

Brent crude also slumped but was nowhere near as weak as more storage is available worldwide.

That meant bad news for energy companies such as South32.

Its share price dropped 5.5 cents, or 2.76 per cent, to $1.93.

Origin Energy suffered similar misfortune, and was down nine cents, or 1.84 per cent, to $4.80.

Property stocks also dragged the bourse lower, with Goodman Group losing 3.33 per cent to $12.76.

Westfield shopping centre owner Scentre Group fell 0.7 per cent to $2.13.

Virgin Australia remains in a trading halt after entering voluntary administration, with big four accounting firm Deloitte taking control of the debt-laden airline.

Rival airline Qantas was up 2.23 per cent to $3.67 following the news.

The big banks were collectively flat.

The Commonwealth gained 0.03 per cent, NAB was up by 0.06 per cent and there was a 0.13 per cent rise for Westpac.

ANZ recorded a 0.25 per cent drop.

Macquarie Group lost 0.22 per cent to $99.95.

Health benchmark CSL fell 0.47 per cent to $314.32.

Miner BHP fell 1.23 per cent to $30.44 after announcing its previous guidance for full year copper production is under review.

Rio Tinto fell 1.11 per cent to $87.93 and Fortescue Metals was down 0.22 per cent to $11.32.

Gold miners Newcrest, Northern Star, and Evolution were up by between 1.75 per cent and 4.53 per cent as investors flocked to the safety of the bullion.

Woolworths was helping to keep consumer staples flat with a 0.78 per cent loss to $36.83.

Coles was up just 0.25 per cent at $16.24.

The Australian Bureau of Statistics earlier published COVID-19 economic data that indicated the number of Australians with a job fell by 6.0 per cent since the coronavirus crisis began.

On Wall Street overnight the Dow Jones Industrial Average dropped 2.44 per cent to end at 23,650.44 points, while the S&P 500 lost 1.79 per cent to 2,823.16.

The Nasdaq Composite dropped 1.03 per cent to 8,560.73.

The Australian dollar was buying 63.01 US cents at 1200 AEST, down from 63.62 US cents at Monday's close.