Motley Fool Australia

Billions wiped out again, ASX 200 plunges over 7%

ASX 200
Credit: Cimexus

It was another terrible day for the S&P/ASX 200 Index (ASX: XJO) due to the coronavirus. It fell over 7% after more negative news.

US bans European travellers

United States President Donald Trump has banned all European travellers for at least 30 days.

The move is meant to protect the US from getting any more imported cases, though US citizens are free to return from Europe.

Initially, Trump said that trade and cargo would also be banned from Europe, though he then clarified later that trade will in no way be affected.

Various travel businesses took a large tumble after the news. The Webjet Limited (ASX: WEB) share price fell almost 20%. The Qantas Airways Limited (ASX: QAN) share price dropped 9.9%. The Flight Centre Travel Group Ltd (ASX: FLT) share price went down 18.2%. The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price fell 3.8%. The Corporate Travel Management Ltd (ASX: CTD) share price dropped 9.6%.

Australia announces stimulus package

Various Australian individuals and businesses will be entitled to financial support due to the coronavirus.

Many Australians will receive a $750 payment, small and medium businesses will get support for employees and a larger number of businesses will get incentives to invest in plant and equipment assets.

Despite these measures, various Australian shares focused on the domestic economy dropped. The Commonwealth Bank of Australia (ASX: CBA) share price declined by 7.9%, the Wesfarmers Ltd (ASX: WES) share price fell 6.5%, the JB Hi-Fi Limited (ASX: JBH) share price went down 8.2% and even the Dicker Data Ltd (ASX: DDR) share price dropped 1.25%.

Rest of the share market drops

There were only two shares that went up in the ASX 200 today. The Cimic Group Ltd (ASX: CIM) share price rose 2.2% and the Pro Medicus Limited (ASX: PME) share price increased by 1.25%.

The rest of the ASX was a sea of red. Two of the other worst share price falls belonged to Pilbara Minerals Ltd (ASX: PLS) and IOOF Holdings Limited (ASX: IFL), they dropped 20% and 15.8% respectively.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Dicker Data Limited, Flight Centre Travel Group Limited, Pro Medicus Ltd., and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Webjet Ltd. 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.

Related Articles…

Latest posts by Tristan Harrison (see all)