Local blue chips finished 1.03% lower today, and was close to posting its worst month since January. For the month of May, the ASX 200 fell by 1.85%.

News that China has eased restrictive lockdowns sparked a mini rally in commodities.

China said it recorded less than 100 new Covid cases on Monday, with the Shanghai government now allowing factories to resume production from June 1.

The news has sparked optimism of renewed demand for commodities, pushing oil and iron prices higher.

The Aussie dollar, which usually tracks the movement in minerals and metal prices, also jumped to US72c.

Earlier today, the ABS released Australia’s current account surplus for the March quarter, which were flat and missed expectations of $13.2 billion.

Australia, Balance of Payments/Current Account Balance (March quarter 2022): Flat (survey: $13.2bn); Net exports to detract 1.7pp from GDP. Company operating profits (March quarter): +10.2% (survey: +5%). Inventories: +3.2% (survey: +0.7%). #ausbiz #ausecon #commsec— CommSec (@CommSec) May 31, 2022

The crucial quarterly GDP data will be released tomorrow.

According to the Reserve Bank, the GDP is forecast to grow by 4.25% over 2022, and by 2% over 2023.

Meanwhile, at the AFR Banking Summit today, Deloitte partner Chris Richardson said the market was betting on rates rising above 3% in coming years.

“If that happens, most models would suggest you’d lose 15 per cent to 20 per cent out of housing prices in Australia – there goes $2 trillion,” Richardson said.

“Markets are saying your life is about to be hell.”

Back on the ASX, all 11 sectors were in the red today.

With Wall Street closed for Memorial Day on Monday, the local bourse lost a bit of direction, with Tech and Financials leading the selloff.