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While Aussie shares remain under pressure at lunch due to concerns about the economic impact of the coronavirus, the market has bounced back significantly from this morning’s lows. The ASX 200 is currently down by 103pts or 1.5 per cent to 6875.3. At its worst, the market was down by as much as 2.55 per cent; the biggest tumble in six months for local stocks. In two days however, the Aussie market has wiped out a healthy portion of this year’s improvements.

Fears about the economic impact of the coronavirus and the risk of this turning into a pandemic has markets on edge. In recent days, clusters of infection have been seen in South Korea, Italy and Iran. Broadly speaking, the illness has had an impact on the flow of people, tourism, trade, supply chains and demand for commodities.

While all sectors are lower, the tech index has rebounded aggressively from its bottom mainly thanks to improvements from Appen (APX), which is surging on its earnings this morning.

Travel related stocks continue their declines on the risk of further travel restrictions, flight cancellations and a more cautious tourist. Qantas (QAN) is down 1.5 per cent, Webjet (WEB) is sliding by 6 per cent and Flight Centre (FLT) has shed a further 2.4 per cent. Retailers from JB Hi-Fi (JBH) to Harvey Norman (HVN) and Myer (MYR) are under pressure.

Most commodity prices are sliding, with oil hit hardest. The commodity is down 3.7 per cent on concerns of a drop in demand for energy products. Gold is the obvious exception, due to safe haven buying of the precious metal. Most gold miners however, are under pressure following a few strong performances in recent days.

In recent weeks a number of companies have warned of the potential impact of the coronavirus on their businesses. This includes Blackmores (BKL), Cochlear (COH), Treasury Wine Estates (TWE), WiseTech (WTC), Sydney Airport (SYD), Webjet (WEB) and Select Harvests (SHV).

Tuesday is a tough session for companies to post their latest earnings, with most stocks following the broader market lower. Estia Health (EHE) is down 2 per cent after posting a softer result as the aged care operator has been impacted by tougher regulation, higher costs and lower occupancy rates. Blackmores (BKL), Oil Search (OSH), Qube (QUB) and Caltex (CTX), which have all released results this morning are also under pressure.

Santos (STO), The Star Entertainment Group (SGR), Sandfire (SFR), Reckon (RKN), IOOF (IFL), Downer (DOW), Domino’s (DMP), Challenger (CGF) and Breville (BRG) are all trading exdividend today.

2.4bn shares have changed hands today worth $5.1bn. 251 stocks are up, 954 down and 310 are unchanged.

Published by CommmSec