The ASX is poised to plunge when trading resumes this morning after the trading on the futures market for the ASX 200 drove a 200 point slump overnight.
That fall at the close of trading was one of the largest seen in the futures market for years.
It points to another day of big falls for the Australian sharemarket of more than 4% at worst.
At 5 am the futures market was pointing to a drop of 160 points, or 2.7%, at the open.
On Wednesday, the ASX 200 fell 3.6% or 214 points.
Bank stocks took a pounding on Wednesday and will come under more pressure today, as will oil stocks.
Commonwealth Bank shares lost 6.6% and NAB slumped 6.3%. ANZ shares lost 5.5% and Westpac shares dropped 5.2%.
Gold prices fell, meaning that small safe haven will vanish today, especially after Newcrest, the sector leader was sold off after it cut its 2019-20 production guidance by 8%.
On Wall Street, the S&P 500 fell to the brink of a bear market while the blue-chip Dow did tip into bear territory after the World Health Organisation called the coronavirus outbreak a pandemic for the first time.
The Dow dropped 5.9%, marking a fall of more than 20% from its most recent peak last month (which defines as a bear market).
The broader S&P 500 fell 4.9% erasing Tuesday’s 4.8% jump and ending just short of a bear market. The Nasdaq shed 4.7% of its value.
