Australian investors are bracing for more huge share market losses after European markets overnight suffered their worst day in history in a global rout.

Global markets plunged in the wake of a US travel ban for Europe with European markets closing down about 12 per cent while the US tanked 10 per cent.

The SPI200 futures contract was down 382 points, or 7.24 per cent, at 4893 at 0700 AEDT on Friday, suggesting a plunge of more than seven per cent when the market opens at 1000 AEDT.

By the local market close on Thursday the ASX200 had lost 20.4 per cent of its value in just 14-and-a-half trading sessions and had sunk to its lowest level since January 8, 2019.

Stock markets across the globe plunged overnight after investors were surprised by President Trump’s travel ban for mainland Europe.

NAB’s morning call says markets are in free fall as containment measures impact heavily on business, not least President Trump’s ban on visitors from mainland Europe.

“Central banks are doing what they can – not much in the case of the European Central Bank – but the focus is on the inaction of governments to provide sufficient stimulus,” the note says.

The Australian dollar was buying 62.33 US cents at 0700 AEDT on Friday down from 65.05 at the market closed on Thursday.