S&P/ASX 200 (INDEXASX:XJO) (ASX:XJO) is experiencing a dark Monday with the index down 6.04% to 5,840.6 at 1.31pm AEST.
Perhaps the biggest story of the day is oil, with Crude Oil WTI down 25% to US$30.80 per barrel as producing nations cut prices creating a price war.
The ASX's largest oil producers are down by as much as 32% with beat-up names including Oil Search (ASX:OSH) Santos (ASX:STO), Worley Parsons (ASX:WOR) and Woodside Petroleum (ASX:WPL).
Apart from select gold producers, nearly all index constituents are down.
Notably, the most resilient stocks today are Fisher & Paykel Healthcare (ASX:FPH), Woolworths Group Ltd (ASX:WOW), and Elders Ltd (ASX:ELD).
[REPORT] Mid-Session: The energy sector leads broad declines as the #ASX 200 falls 5.5% https://t.co/fSsFXd8Rl0 #ausbiz pic.twitter.com/jitW1U5Fq1
— CommSec (@CommSec) March 9, 2020
Pre-market: S&P/ASX 200 expecting more uncertainty in week ahead, stimulus looms
ASX 200 will be largely dictated by US futures trading today as both uncertainty and volatility remain in global markets due to COVID19.
Last Friday, the S&P 500 Index (INDEXSP:.INX) closed at 2,972.37, −51.57 or down 1.71% and the Nasdaq Composite (INDEXNASDAQ: .IXIC) closed at 8,575.62, -162.97 or down 1.86%.
Notably, there was a flurry of buying heading into the close, similar to the prior Friday, which was the beginning of a small bounce.
Australian government preparing stimulus package
Some hope exists for the week ahead with the government preparing to reveal an economic stimulus package to combat the effects of COVID19 this week.
Commentary suggests the stimulus will focus on infrastructure that can be brought forward and an investment-allowance for business.
The fallout from COVID19 is becoming more and more evident with Flight Centre Limited (ASX:FLT) reportedly asking employees to cut back their working hours or take unpaid leave.
Australia’s fiscal stimulus package to protect the economy against the impact of the coronavirus may cost as much as $3.3 billion, Sunday Telegraph reports https://t.co/cLocGvOY27
— Bloomberg (@business) March 8, 2020
Gold remains strong and steady, oil collapses
Gold last traded flat heading into the weekend at US$1,676 per ounce while Crude Oil WTI collapsed to $41.61 per barrel.
The AUD is hovering above its recently made 10-year low of around 64.5 cents versus the USD and is trading at 66.0 cents.
09.03.20 Morning Report pic.twitter.com/7ynse21G0F
— CommSec (@CommSec) March 8, 2020