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Aussie stocks rally 6 per cent, pouring tens of billions back into market

Published: (Updated: ) in Australian News by .

Overnight the Dow experienced the strongest one-day percentage rise since 1933.

The Australian share market has experienced a huge surge, immediately lifting by more than 6 per cent as investors rally on the hopes of a US economic stimulus package.

As of 10:20 AEDT, the benchmark S&P/ASX 200 was up a whopping 284 points or 6.10 per cent, representing tens of billions of new money flowing back into the local bourse.

The Australian dollar is currently buying 59.84 US cents at 1015 AEDT on Wednesday up from 59.39 US as the market closed on Tuesday.

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Analysts have said it looks set to be another positive day but are cautious about how long any bounce will last.

The local bourse rallied on Tuesday from a near eight-year low with the US Federal Reserve taking drastic action to shore up markets and new coronavirus cases seeming to plateau in Italy.

Overnight the US, European and Chinese stock markets also surged on hopes a $US2 trillion stimulus deal would soon be clinched.

Among the latest round of virus-related ASX company announcements on Wednesday was Viva Leisure, which has closed all its gyms and cancelled the casual shifts of 800 staff.

Non-essential permanent Viva staff have been placed on either paid or unpaid leave and redundancies have been offered for some permanent roles not required during the shutdown period.

Funeral operator Invocare also said it was implementing contingency plans now that funerals have been limited to 10 people.

It said it has live streaming and recording facilities at many of its locations.

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Dominos Pizza's will be closing its New Zealand stores in light of the country's COVID-19 measures, while Wesfarmers will also shut its 25 Kmart outlets in NZ but will keep Bunnings open.

Virgin Australia has stood down about 8,000 of its 10,000 workers until at least the end of May and further slashed domestic flight capacity in the wake of the coronavirus border restrictions.

Meanwhile, Cochlear chairman Rick Holliday-Smith said the company has embarked on a "non-negotiable" mission to eliminate liquidity risk.

What's closed during the coronavirus shutdown.

The combination of COVID-19, and the likely increase in debt from the adverse judgment in a long-running legal case, is expected to push debt above the board's comfort levels, he said.

"Cochlear's implant recipients rely on the company for support throughout their lifetime which makes eliminating liquidity risk non-negotiable," the company said in a release.

The firm on Wednesday announced it will also embark on a non-underwritten share purchase plan to raise up to $50 million.

Source: 9News

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