The fast-spreading coronavirus will clearly have an impact on global economic growth and the International Monetary Fund is likely to downgrade its growth forecast as a result, an IMF spokesman says.
"Clearly the virus is going to have an impact on growth," IMF spokesman Gerry Rice told a regular briefing, not giving any specific details.
He said he expected a decision soon on the impact of the coronavirus for the IMF and World Bank spring meetings in April, noting that a range of options were under consideration.
Reuters reported on Wednesday that officials were considering scaling back the meetings or holding them by teleconference.
Devastating results
Australian shares are set for their worst week since the global financial crisis after the benchmark index plunged another three per cent.
It has plunged about ten per cent, wiping off about $240 billion in value, since the market hit a record high on February 20 as the coronavirus outbreak impacts markets and global growth.
The S&P/ASX200 index was down 203.6 points, or 3.06 per cent, at 6,454.3 at 1030 AEDT on Friday with all indices a sea of blazing red.
Australians stocks have tanked more than 3 per cent after opening on Friday in the worst week for the ASX since the global financial crisis. Source: AAP
The broader All Ordinaries index fell 211 points, or 3.13 per cent, to 6,526.4 points with tech stocks down more than 4 per cent while the financial, materials, energy, telcos and property indices sank more than three per cent each.
Friday's losses on the local market so far set this week up to be the worst for the ASX since October 2008.
"One of the worst weeks in recent memory"
European and US stock markets slumped painfully again Thursday as new coronavirus infections spread outside China, exacerbating fears of a global slowdown.
While the markets in Shanghai and Hong Kong closed higher, Europe and New York saw a sea of red.
London, Frankfurt and Paris all posted losses of more than three percent on the day.
Wall Street also took a beating, with major indices shedding more than four percent in what is shaping up to be the US market's worst week since the 2008 financial crisis.
Screens were filled with red on the floor of the New York Stock Exchange as growing fears of a Coronavirus pandemic cast a shadow over the global economy. Source: Getty Images North America
The Dow shed nearly 1,200 points, or 4.4 percent, taking its losses for the week to more than 11 percent.
Oil prices plunged by more than four percent at one point before recovering somewhat, while the yen gained as traders turned to a traditional haven in times of economic turbulence.
"There was more coronavirus carnage on the markets," Spreadex analyst Connor Campbell told AFP.
Traders on the floor of the New York Stock Exchange showed signs of panic. Source: Getty Images North America
This is "one of the worst weeks in recent memory and terrifyingly, it's not over yet," he said.
"Friday is a tricky proposition."
