ASX 200 drops again, coronavirus causes more falls // Motley Fool Australia

ASX 200 drops again, coronavirus causes more falls // Motley Fool Australia

The ASX 200 (INDEXASX: XJO) fell again today, it dropped by 1.8% to 6,325 despite the cut by the Reserve Bank of Australia (RBA) and US Federal Reserve.

Despite the ASX’s poor day, the US futures is actually pointing to a positive day on Wednesday. There’s a lot more volatility in the market right now.

The ASX 200 (INDEXASX: XJO) fell again today, it dropped by 1.8% to 6,325 despite the cut by the Reserve Bank of Australia (RBA) and US Federal Reserve.

Despite the ASX’s poor day, the US futures is actually pointing to a positive day on Wednesday. There’s a lot more volatility in the market right now.

Australia’s GDP keeps growing

The quarterly GDP figures for Australia for December 2019 showed a rise of 0.5% and an annual rise of 2.2%.

Investors had worried that the bushfires might have caused a hit. However, the domestic economy is certainly a bit sluggish with growth of just 0.1%.

Share prices of Australian economy shares also fell today, including the BHP Group Ltd (ASX: BHP) share price falling 0.8% and the Woodside Petroleum Limited (ASX: WPL) share price dropped 3.4%, but the Fortescue Metals Group Limited (ASX: FMG) share price rose 1%.

Banks drop again

Lower interest rates and lower net interest margins (NIM) are likely to mean lower profits for the banks.

Investors have pushed the share prices of the big banks lower. The Australia and New Zealand Banking Group (ASX: ANZ) share price dropped 3.4%, the Commonwealth Bank of Australia (ASX: CBA) share price is down 2.7%, the National Australia Bank Ltd (ASX: NAB) share price fell 3.4% and the Westpac Banking Corp (ASX: WBC) share price declined 3%.

Healthcare shares drop

Interestingly one of the biggest falls today belonged to healthcare businesses.

The CSL Limited (ASX: CSL) share price fell 2.4%.   

The Cochlear Limited (ASX: COH) share price declined 4.6%.

The Ramsay Health Care Limited (ASX: RHC) share price dropped 5%.

Time will tell which industries are hurt the most because of the coronavirus and its knock-on effects. 

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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