ASX set to bounce amid virus volatility

The Australian share market is tipped to bounce back after another day of wild swings that ultimately sent the bourse into the red.

The SPI200 futures contract was up 71 points, or 1.39 per cent, at 5,180.0 points at 0800 AEDT on Wednesday, suggesting strong early gains for local stocks in a volatile market.

The S&P/ASX200 benchmark index climbed by as much as 3.5 per cent on Tuesday before dropping most of the afternoon to finish down 104.6 points, or 2.02 per cent, at 5,076.8.

For the month, the ASX200 closed down 21.2 per cent, and it finished out the quarter down 24.1 per cent in its worst quarterly decline ever.

Elsewhere, Wall Street suffered more losses overnight as the coronavirus pandemic continues to stoke economic fears.

The Dow Jones ended its worst quarterly performance since 1987 with a 410.32 point fall, or 1.84 per cent drop, to 21,917.16.

It was also the S&P 500’s weakest quarter since 2008, even factoring in last week’s surge on fresh government stimulus.

The Reserve Bank of Australia is today scheduled to release the minutes of its ad hoc meeting held a fortnight ago, where board members decided to cut the cash rate to 0.25 per cent and launch quantitative easing measures.

The Australian dollar is buying 61.50 US cents, down from 61.99 US cents as the market closed on Tuesday.