ASX dives on coronavirus fatality warning

ASX dives on coronavirus news. Source: Getty

The ASX200 has recouped some of its losses from this morning, closing the day down 1.98 per cent, after dropping 3.66 per cent today.

The broader All Ords has dropped 1.93 per cent.

What happened this morning?

Markets have dropped into the red after US stocks dived off the back of more negative coronavirus news. 

The benchmark S&P/ASX200 (^AXJO) was down 3.66 per cent at 10.09 AEDT despite rallying 3.58 per cent on Wednesday.

The All Ordinaries index (^AORD) also dropped 3.55 per cent. 

Banks, property and consumer discretionary stocks suffered the biggest losses.

What happened in markets overnight?

Wall Street continued to fall after suffering its worst quarter since 1987, as US health officials revealed that the death toll from the COVID-19 pandemic was set to surge.

The US benchmark S&P 500 index fell over 4 per cent, and President Donald Trump warned Americans can expect a “painful” two weeks ahead.

Economic data showed US manufacturing activity fell to 11-year lows, reinforcing economists’ views that the US economy was in recession.

S&P 500 firms are expected to enter an earnings recession in 2020, falling 4.3 per cent in the first quarter and 10.9 per cent in the second, according to the latest estimates.

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