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March 10, 2020 16: 37:53
Australia’s stock exchange has actually rebounded after the ASX200 shed as much as 3.7 percent at the start of trade today.
Bottom line:
- The Australian share market was almost back to parity within the hour
- Australia’s 7.3 per cent drop on Monday was replicated by global markets when they opened for the week overnight
- Qantas shares fell more than 7 per cent after announcing coronavirus-related cuts to worldwide flights
The Australian share market lost almost $70 billion in early trade after Wall Street fell practically 8 percent and an automatic market shutdown started early.
About half an hour after the open, the ASX had actually recovered to be down by less than 1 per cent off the back of hopes that economic stimulus will stem the alarming economic impact of coronavirus.
The Australian market was the very first to quickly react to US President Donald Trump stating a stimulus bundle will include payroll tax relief and support to workers.
The prospective tax relief will be on top of an $US8.3 billion stimulus bundle signed last month.
The ASX200 index closed 3.1 per cent greater at 5,940
The All Ordinaries index got 3 percent to 5,996
The Australian dollar was trading lower on a stronger greenback at 65.6 US cents.
Sectors that have actually seen a collapse in value over the previous couple of weeks such as energy stocks, mines and innovation firms have reversed course.
CMC Markets primary market strategist for Asia Pacific, Michael McCarthy, said Mr Trump’s comments have triggered the rebound on