Dow suffers worst drop since Black Monday: ASX poised to plunge at the open

Dow suffers worst drop since Black Monday: ASX poised to plunge at the open


The Australian share market looks set to drop at the open. The Dow Jones Industrial Average plunged yesterday suffering its worst drop since the 1987 “Black Monday” market crash, when it collapsed by more than 22 per cent. Trading was stopped for 15 minutes shortly after the open in New York. But the pause failed to keep the index from closing in a bear market. New York declared a state of emergency with large venues likely to be closed for months to try to contain the coronavirus. European stocks closed 11 per cent lower in their worst one-day drop ever on coronavirus fears. US President Donald suspended all travel from the US to Europe for 30 days. The European Central Bank decided not to cut interest rates, despite market expectations for a reduction amid the outbreak which deepened losses. On the commodities front gold has shed over $70 and oil is down.


Wall Street plunged yesterday: The Dow Jones Industrial Average dropped almost 10 per cent to close at 21,201, the S&P 500 shed 9.5 per cent to 2481 and the NASDAQ lost 9.4 per cent to 7202.

European markets closed lower: London’s FTSE lost 11 per cent, Paris fell 12 per cent and Frankfurt also shed 12 per cent.

Asian markets closed lower: Tokyo’s Nikkei dropped 4.4 per cent, Hong Kong’s Hang Seng fell 3.7 per cent and China’s Shanghai Composite was down 1.5 per cent.

Taking all of this into equation, the SPI futures are pointing to a 7.2 per cent fall.

Yesterday, the Australian share market closed 7.4 per cent lower at 5305.

Company news 

The Decmil Group (ASX:DCG) believes it is entitled to all amounts claimed for its performance under the contract for the Rapid Deployment of Prisons project for the Department of Corrections in New Zealand. Decmil also confirms that the dispute will move immediately to arbitration. However, as a matter of prudence, Decmil will make full provision in its accounts for moneys that remain unpaid under the contract, which total approximately $50 – $60 million. Similarly, Decmil is continuing to pursue its rights under the disputed solar farm contract with Sunraysia. Shares in the Decmil Group (ASX:DCG)
last traded at 41 cents before being suspended on the 27 of Feb.


Boral Limited (ASX:BLD) is paying 9.5 cents 50 per cent franked
Duxton Water Ltd (ASX:D2O) is paying 2.8 cents fully franked
Grange Resources. (ASX:GRR) is paying 1 cent fully franked
HUB24 Ltd (ASX:HUB) is paying 3.5 cents unfranked
Inghams Group (ASX:ING) is paying 7.3 cents fully franked
Tassal Group Limited (ASX:TGR) is paying 9 cents 25 per cent franked
Yancoal Aust Ltd (ASX:YAL) is paying 21.21 cents unfranked


One Australian Dollar at 7:45 AM was buying 62.28 US cents, 49.67 Pence Sterling, 65.33 Yen and 55.74 Euro cents.


Iron Ore has added 0.8 per cent to $90.75.
Iron Ore futures suggest a 0.2 per cent gain.
Gold has shed $71.20 to US$1571 an ounce.
Silver has lost $1.07 to US$15.71 an ounce.
Oil was down $1.96 to US$31.02 a barrel.
Copyright 2020 – Finance News Network

Source: Finance News Network

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