Australian Share Market Reveals Potential Storm for US Equities While Bitcoin Falls

The ASX fell sharply during its opening session Monday after Australia's Prime Minister announced drastic measures to curb the spread of coronavirus.

Mar 23, 2020 at 12:05 a.m. UTC
Updated Sep 14, 2021 at 8:21 a.m. UTC

The Australian share market fell sharply during its opening session of trading on Monday (AEST) after the country's Prime Minister announced drastic measures to curb the spread of coronavirus (COVID-19).

Reeling from its worst week since the global financial crisis in 2008-2009, the benchmark S&P/ASX200 has fallen from Friday's close of 4,816 basis points to around 4,536, after Prime Minister Scott Morrison declared historic measures to curb the rise of COVID-19 from within the country.

On Sunday, March 22, Morrison ordered all pubs, clubs, churches and indoor sporting venues must close until further notice, while essential services such as grocery stores, gas stations and banks were to remain open. Australian schools will remain open for now. As of Sunday morning, the government reported 1,098 confirmed cases and seven deaths.

The new measures aim to limit the spread of the deadly virus that has sent developed economies into free fall in recent weeks, with the ASX responding with a 8.2 percent drop during the early Asian trading hours, revealing what could be in store this week for U.S. equities when they open Monday.

The chief investment officer at Orthogonal Trading, Joshua Green, said the downward pressure currently being experienced in the Aussie share market was the result of much of the same seen over last week's trade.

"I think the ASX is being driven by global equities, which are being driven by a combination of momentum selling, panic selling and de-levering on the back of coronavirus fears," Green said.

"The market clearly wants some sort of fiscal deal in the US which appears to be a struggle due to partisanship," he added.

Meanwhile in crypto, bitcoin (BTC) has fallen 5 percent on the day, from $6,200 to $5,894 with the rest of the market suffering a similar fate, signaling the potential for further bloodletting when U.S. equities markets open their doors for trading in the next 16 hours or so.

The total market capitalization of all cryptocurrencies has fallen $10 billion over a 24-hour period, while major names such as ether (ETH), XRP and bitcoin cash (BCH) are down between 5 percent to 7 percent, respectively.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
What Is DESK? CoinDesk’s Social Token, Explained

How to earn, store and spend our blockchain-powered answer to loyalty points at Consensus 2022 and beyond.

How to earn, store and spend our blockchain-powered answer to loyalty points at Consensus 2022 and beyond.

CoinDesk - Unknown
2
CoinDesk - Unknown
The Metaverse Will Make Gamers of Us All

Fundamentally, the "metaverse" is a game – but one with real consequences and opportunities. This article is part of "Metaverse Week."

Fundamentally, the "metaverse" is a game – but one with real consequences and opportunities. This article is part of "Metaverse Week."

CoinDesk - Unknown
3
CoinDesk - Unknown
Fed Survey: 12% of US Adults Held Crypto in 2021

It marks crypto’s first appearance in the central bank’s “Economic Well-Being of U.S. Households” survey.

It marks crypto’s first appearance in the central bank’s “Economic Well-Being of U.S. Households” survey.

CoinDesk - Unknown
4
CoinDesk - Unknown
Metaverse Real Estate – Next Big Thing or Next Big Boondoggle?

Highly-prized pots of land are fetching fortunes on the biggest platforms. How do the economics of metaverse real estate stack up?

Highly-prized pots of land are fetching fortunes on the biggest platforms. How do the economics of metaverse real estate stack up?

CoinDesk - Unknown