ASX follows US, European sharemarkets lower as Delta variant stokes economic recovery slowdown fears - NEWS.com.au

The ASX followed US markets lower, closing in the red for the second straight day as the highly infectious Delta strain spooked investors.

The ASX followed US and European markets lower, closing in the red for the second straight day as the highly infectious Delta strain spooked investors.

It was looking worse in early trade on Tuesday, with the market down the better part of 1 per cent, but losses were pared back, OMG chief executive Ivan Tchourilov said.

CommSec senior economist Ryan Felsman said surging global Delta variant infections had unnerved investors, stoking concerns that rising case numbers could lead to renewed lockdowns and a protracted economic recovery, with European markets also closing lower overnight.

Oil Search bucked the trend after issuing a statement “clarifying” it had received a merger proposal from Santos, which it had rejected.

The news came a day after Oil Search refused to answer a question on a conference call over the shock departure of chief executive Keiran Wulff about whether it had been approached by a prospective corporate suitor.

Santos said in a statement the proposal would leave Oil Search with 37 per cent of the merged group and Santos with 63 per cent.

Santos also said it had subsequently sought to engage the Oil Search board on the “logical combination” and “extremely attractive opportunity”.

But in its second statement for the day, Oil Search said it had advised Santos it was open to a revised bid and “at this stage no such proposal has been forthcoming”.

Crown Resorts lost 2.6 per cent to $10.46 after scathing closing submissions to the Victorian royal commission by counsel assisting Adrian Finanzio, who said the company had lost public confidence in the wake of its money-laundering scandal and it was open to the commission to strip the casino giant of its Victorian gaming licence.