Multi-billion dollar coronavirus stimulus package expected: ASX set to open lower

Market Reports

by Rachael Jones

Following a steep decline from from US markets, the Australian share market looks set to open lower. The World Health Organization has declared the coronavirus a pandemic. There are now over 118,000 cases of COVID-19 in 114 countries around the world. There are large outbreaks of the virus in Italy, South Korea, and the United States. Losses were seen around the world and the Dow plunged into a bear market. Back home the Federal Government are expected to announce a stimulus package today including one off payments for pensioners and new start recipients and financial boosts for small businesses. On the commodities front, oil has lost and safe haven gold is also down.


Wall Street plunged yesterday: The Dow Jones Industrial Average dropped 5.9 per cent to close at 23,553, the S&P 500 fell 4.9 per cent to 2741 and the NASDAQ lost 4.7 per cent to 7952

European markets closed lower: London’s FTSE lost 1.4 per cent, Paris fell 0.6 per cent and Frankfurt was down 0.4 per cent.

Asian markets closed lower: Tokyo’s Nikkei dropped 2.3 per cent, Hong Kong’s Hang Seng fell 0.6 per cent and China’s Shanghai Composite was down 0.9 per cent.

Taking all of this into equation, the SPI futures are pointing to a 3.5 per cent fall.

Yesterday, the Australian share market closed 3.6 per cent lower at 5726.

Company news 

The a2 Milk Company (ASX:A2M) has entered into an exclusive licensing agreement with Agrifoods Cooperative for the production, distribution, sale and marketing of a2 Milk™ branded liquid milk for the Canadian market. They will provide Agrifoods with access to its IP and marketing assets as well as its proprietary systems and know-how relating to the sourcing and processing of a2 Milk and will work with Agrifoods and local Canadian dairy farmers to source milk locally. Shares in A2 Milk (ASX:A2M) closed 3.37 per cent lower at $15.50 yesterday


AngloGold Ashanti (ASX:AGG) is paying 2.4927 cents unfranked
Air New Zealand (ASX:AIZ) is paying 10.5344 cents unfranked
Costa Group Holdings (ASX:CGC) is paying 2 cents full franked
DWS Ltd (ASX:DWS) is paying 3 cents full franked
Ebos Group Ltd (ASX:EBO) is paying 31.7812 cents 95.77 per cent franked
Gr Engineering Ltd (ASX:GNG) is paying 2 cents unfranked
GTN Limited (ASX:GTN) is paying 1.4 cents 70 per cent franked
Laserbond Limited (ASX:LBL) is paying 0.5 cents full franked
Mercury NZ Limited (ASX:MCY) is paying 6.1238 cents unfranked
Michael Hill Int (ASX:MHJ) is paying 1.5 cents unfranked
National Tyre&Wheel (ASX:NTD) is paying 1.25 cents full franked
Shine Corporate (ASX:SHJ) is paying 1.5 cents unfranked
Spark New Zealand (ASX:SPK) is paying 11.5363 cents unfranked
Templeton Global (ASX:TGG) is paying 2 cents full franked
Vista Group Int Ltd (ASX:VGL) is paying 1.7094 cents unfranked
Vitalharvest Freehold Trust (ASX:VTH) is paying 3.25 cents unfranked
Western Areas Ltd (ASX:WSA) is paying 1 cent full franked


One Australian Dollar at 7:45 AM was buying 64.86 US cents, 50.58 Pence Sterling, 67.81 Yen and 57.53 Euro cents.


Iron Ore has dropped 2.2 per cent to $90.05.
Iron Ore futures are flat.
Gold has lost $22.60 to US$1638 an ounce.
Silver has lost $0.19 to US$16.76 an ounce.
Oil was down $1.56 to US$32.80 a barrel.