Australian stocks have rebounded close to 2 per cent from the lows struck around 30 minutes ago, but are still down 6 per cent for the session. It’s that kind of day.
At the lows of the session, the benchmark index recorded its largest intraday drop since October 2008, the peak of the GFC.
The recovery, if we can call it that, may be due to a clarification on the speech delivered by US president Donald Trump in which he said trade and travel from Europe would be suspended for 30 days.
The former, trade, has not been suspended.
While that may explain the bounce, the ban on travel rams home the point that social distancing measures to prevent the spread of the coronavirus may soon be rolled out in not only the United States but other nations, including Australia.