(28 March 2020, AFR, p24, Sarah Turner, Reporter)
‘Australia’s sharemarket ended a week of massive gains with a loss on Friday as the number of virus cases in the US surpassed those in China, and it became increasingly clear that the pandemic’s deadly toll will not be slowed by the monster US stimulus package.
‘Investors remain deeply troubled by the depth of the fallout from COVID-19 to the real economy as companies continue to withdraw guidance, slash or suspend dividends, and plead for funding. Agreement on a $US2 trillion ($3.3 trillion) financial aid package for the US economy, plus unlimited bond purchases by the Federal Reserve, fostered hopes this week that the financial destruction could be contained.
‘The market has yet to find a low and there are almost certainly more dividend cuts ahead, according to the head of the $6.5 billion Australian Foundation Investment Company.’
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