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ASX 200 futures are currently trading at 4797-lower by 8.95% as compared to the previous closing. The contract closed in the negative territory in the last trading session also.
In the Cash Markets, the ASX 200 fell 6.43% on Wednesday to close at 4,953.20, losing gains copped on the prior day.
The index on Tuesday posted its best day since October 2008 on expected cash injection by the Reserve Bank of Australia.
The ASX 200 fell today on fears that additional stimulus measures by policymakers would ultimately not be enough to shore up the economy.
The Australian government earlier in March pledged to inject $11.4 billion into the economy.
Market players now await the central bank’s policy meeting on Thursday. The RBA is expected to follow in the footsteps of the Fed in lowering interest rates.
The Australian energy sector plunged 10.6% to end at its lowest level since June 2004. Index heavyweight Santos Ltd fell 12.32% to end at its lowest level since June 2017. Woodside Petroleum shed 8.84% on Wednesday.
Financial shares which have high weightage in the index dropped 7.6% on Wednesday. Commonwealth Bank of Australia and ANZ Banking Group Limited fell 5.46% and 9.67% on Wednesday.
Companies in Australia continued to lower their earnings guidance amid uncertainty surrounding the coronavirus outbreak. Index component Mirvac Group fell 14.75% to close at its lowest level in about two years after it cut its 2020 outlook.
Mining shares which were among the worst affected by the Sino-U.S. trade tensions closed lower today. Index heavyweights Rio Tinto Ltd and BHP Group plunged 3.72% and 3.79% respectively.
On the economic front, Westpac Leading Index (MoM) for February released earlier today came in at -0.4%. The index was below the market expectation of a fall of 0.1%.
On the technical front, the RSI is currently at 22.17% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle band of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell At 4820 Take Profit At 4750 Stop Loss At 4855