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Australian stocks recover after coronavirus sell-off

Published: (Updated: ) in Australian News by .

Australian shares have rebounded after global markets recovered from a sell-off amid concerns about the deadly coronavirus epidemic.

Australian shares have rebounded after global markets recovered from a sell-off amid concerns about the deadly coronavirus epidemic.

The benchmark S&P/ASX200 index was up 26.3 points, or 0.38 per cent, at 7020.8 points at midday AEDT on Wednesday.

The All Ordinaries lifted 27.6 points, or 0.39 per cent, to 7,126 as most sectors rose.

The only sector in the red at noon was the consumer staples index, which was down 2.54 per cent at 13,086.2 points.

It was dragged down by Treasury Wine Estates as the global winemaker's shares dropped more than 20 per cent after an overnight profit warning.

The owner of the famous Penfolds and Wolf Blass labels warned it would miss earnings and growth targets because of its underperforming US wine business.

Another influencer on the consumer staples index was supermarket giant Woolworths, which was down 15 cents, or 0.36 per cent, at $41.00.

Global markets recovered overnight on news the coronavirus epidemic could peak within a week to 10 days and that a vaccine, which needs more trials, had been developed.

Some 132 people have died from the virus in China, where there are 5974 confirmed cases.

Fears about an epidemic infecting global growth have seen travel related stocks plunge.

By noon on Wednesday, Qantas had lifted seven cents to $6.43.

Webjet was up 23 cents, or 1.86 per cent, at $12.60 after rejecting details in a report that saw its shares dive to two-year lows on Tuesday.

In other local news on Wednesday, headline inflation rose by a stronger-than-expected 0.7 per cent but trimmed CPI was in line with market expectations.

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The US dollar was buying 67.69 US cents at noon AEDT on Wednesday, down from 67.59 at the market close on Tuesday.

Australia's benchmark S&P/ASX200 index finished on Tuesday down 96 points, or 1.35 per cent, at 6,994.5 points in the worst day of trading for 2020.

The All Ordinaries closed down 104.8 points, or 1.45 per cent, at 7,098.4.

Source: 9News https://www.9news.com.au/national/australian-stocks-recover-after-concerns-over-coronavirus-epidemic/ec7d824e-e499-46a5-b94b-8db19e4aa6bf

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