Australia Market stumbles amid worsening coronavirus outbreak

The Australian share market finished session steep lower on Monday, 03 February 2020, as risk-off selloff triggered on tracking Wall Street's slump late last week amid ongoing concerns over the coronavirus outbreak. Nearly every sector ended in the red, with energy stocks being the leading decliners. At closing bell, the benchmark S&P/ASX200 index declined 93.95 points, or 1.34%, to 6,923.25, while the broader All Ordinaries sank 101.33 points, or 1.42%, to 7,019.87.

Investors have been closely tracking the coronavirus outbreak in recent days. Stocks on Wall Street plunged on Friday amid concerns over the virus' potential economic impact.

China's National Health Commission reported the death toll in China had reached 361, surpassing the number of mainland deaths from SARS in 2002-2003, as of the end of Sunday. The number of confirmed cases hit 17205. Cases have been confirmed in the U.K., Germany, Finland, France, Italy, Spain, Thailand, Japan, South Korea, Vietnam, the U.S., Taiwan, Hong Kong, Macao, Singapore, Nepal, India, Sri Lanka, Malaysia, Australia, Canada, the Philippines, the United Arab Emirates, Cambodia, Sweden and Russia.

US authorities declared a public health emergency and banned foreign nationals who have travelled to China recently from entering the country.

The energy sector was lower on concerns over the prospect of slowing global activity and the impact on global oil demand. Santos (STO) was down 5% to A$8.25 and Woodside (WPL) fell 2.9% to A$33.70. Oil Search (OSH) fell 7.2% to A$6.72 after reporting that negotiations had broken down with the PNG government in relation to the development of joint venture project with Exxon Mobil, that would result in a considerable expansion of the group's PNG footprint.

Miners were notable decliners, reflecting falling prices. Iron ore prices slumped 10% last week, along with numerous other commodities, reflecting demand fears linked to the rapid spread of the coronavirus. Several provinces in China have announced an extension of the Lunar New Year holiday period in an effort to contain the spread of the virus. Fortescue Metals (FMG) closed at $11.00, a fall of 3.4% or 39 cents, Rio Tinto (RIO) ended at $96.86 after shedding $1.91 or 1.93%.

Shares of financials were also lower. Macquarie Group (MQG) fell the most with the investment bank slipping 2% to A$141.85. Westpac (WBC) closed with a loss of 1.2% to A$24.48 after confirming it is facing a class action in the US over disclosures relating to alleged money laundering dating back to 2015.

ECONOMIC NEWS: Australia Building Approvals Down 0.2% In December- Australia total number of building approvals issued in December was down a seasonally adjusted 0.2% on month in December, the Australian Bureau of Statistics said on Monday, coming in at 14,752, following the 10.9% jump in November. On a yearly basis, building approvals advanced 2.7% following the .8% slide in the previous month.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, has eased against the greenback. The Australian dollar changed hands at $0.67 after slipping from levels above $0.676 in the previous trading week.

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