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ASX pulls back; Mesoblast dives 45% on FDA order

Summary

  • The ASX200 slipped as much as 1.2% at Friday's open, even after US stocks finished higher
  • Republicans and Democrats continue to haggle over the size and shape of the nation's next stimulus package. Mixed economic data also contributed to a see-sawing offshore session.
  • Oil prices took a dive overnight on pandemic-fuelled fears over global demand. Iron ore is flat. 
  • Mesoblast has confirmed the US FDA has demanded more evidence that its flagship product works before it gets approved. The company's ASX-listed shares fell by as much as 45% at the open 

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Miners and banks slide, Mesoblast hammered

By Alex Druce

Early losses for the major banks and miners - and a 45 per cent plunge for biotech Mesoblast - knocked the ASX200 lower at Friday's open.

The benchmark index was down 0.7 per cent in the opening exchanges at 5832.2, sinking into the red even after Wall Street finished a volatile session higher. The market had slipped 0.9 per cent by 10.35am AEST.

Republicans and Democrats continue to haggle over the size and shape of the nation's next stimulus package. Mixed economic data also contributed to a see-sawing offshore session.

The early ASX loss eats into Thursday's quarter-opening, 1 per cent rise.

Global miner BHP was 2.3 per cent lower after 20 minutes of trade, retracing yesterday's gains, while Rio Tinto fell 1.1 per cent and Fortescue Metals dropped 1.5 per cent.

Commonwealth Bank was up 0.1 per cent but Westpac, NAB and ANZ were each down by between 0.7 per cent and 0.9 per cent. Macquarie Group was 0.3 per cent ahead.

Biotech CSL fell 1.3 per cent but sector stablemate Mesoblast has stolen the headlines with a 45 per cent nosedive to a low of $2.81. The fall comes after the US Food and Drug Administration demanded more evidence that Mesoblast's flagship product works before it gets approved, despite the regulator's advisory committee voting that data supported its efficacy.

Shares were 33 per cent lower at $3.40 after 20 minutes.

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