Investors are bracing for another wild day on the share market after US equities tanked and Australian stocks suffered their worst one-day loss in history.
The SPI200 futures contract was down 209 points, or 4.14 per cent, at 4,839 points at 0800 AEDT on Tuesday, suggesting Australia’s volatile market will plunge.
NAB’s morning call note says global markets were far from impressed with measures to counteract economic impacts of the coronavirus on Monday despite the US Federal Reserve cutting interest rates by a full percentage point and the return of quantitative easing.
Global markets plunged overnight, with the Dow Jones down 10 per cent.
Australia’s benchmark S&P/ASX200 finished down 537.3 points, or 9.7 per cent, at 5,002 on Monday, eclipsing an 8.3 per cent drop on October 10, 2008, during the height of the global financial crisis.
The dive put the index back to levels last seen in April 2016.
The ASX200 has lost 30.5 per cent of its value in three-and-a-half weeks of tumultuous trading since February 20.
The Aussie dollar was buying 61.15 US cents at 0800 AEDT on Tuesday, up from Monday’s 60.96 US cents, which was its lowest level against its US counterpart since 2003.