The Fed's emergency 100 basis point rate cut on Sunday was followed on Monday by further policy easing from the Bank of Japan in the form of a pledge to ramp up purchases of exchange-traded funds and other risky assets. New Zealand's central bank also shocked by cutting rates 75 basis points to 0.25%, while the Reserve Bank of Australia (RBA) pumped more money into its financial system.
Meanwhile, the Reserve Bank of Australia has said it "stands ready" to pump more money into Australia's financial system to keep it functioning as global investors baulk at the coronavirus pandemic. It issued a statement saying it would do what it must to keep Australia's financial markets operating. "The Reserve Bank stands ready to purchase Australian government bonds in the secondary market to support the smooth functioning of that market," RBA governor Philip Lowe said.
Casino groups Star Entertainment and Crown Resorts both crashed after announcing they would close every second poker machine in their facilities, with Star plunging 23.6% and Crown tumbling 11.2%. Poker machine maker Aristocrat was also in freefall, with its shares diving more than 20%.
The big four bank stocks all lost more than 10%, led by a 12.5% fall for ANZ shares, despite regulators announcing they stood willing to provide relief from rules that might curb their ability to keep extending credit to a small business sector that has been smashed by the crisis.
Energy stocks were hard hit, including Oil Search (-19.8%), Santos (-17.7%) and Woodside (-14.4%).
The rout on travel-related companies continued, including Webjet (-22%), Corporate Travel (-15.4%) and Flight Centre (-15.8%).
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CURRENCY: The Aussie dollar fell to its lowest level since the global financial crisis following the RBA's statement.
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