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Aussie stocks met a hostile market with mettle today, staging a miracle afternoon comeback to close green after a sorrowful weak.

The S&P/ASX 200 index plunged eight per cent this morning in what was by all accounts set to be the worst week in ASX history. With the Dow Jones falling 2352.6 points or 10 per cent overnight following President Trump’s travel ban from Europe to the US, local stocks were braced for another beating.

However, a sudden afternoon upturn saw the ASX 200 swing into the green by almost three per cent in the last half-hour of trade. When the market opened, not one single stock on the index was trading green, while all sectors sank in despair. As the closing bell sounded, however, all bar two sectors landed in the green.

The ASX 200 closed 4.42 per cent up at 5539.3 points, while the All Ords ended the day 4.09 per cent green.

The sudden turnaround comes amidst a turbulent political day. It seems the primary catalyst for the change, however, is advisement against mass-gathering announced by Prime Minister Scott Morrison in his address to the Council of Australian Governments (COAG). Starting Monday, the Australian government will advise against gatherings of over 500 people to fight the spread of the Covid-19.

The recommendation does not extend to schools, universities, public transport, or shopping centres. In an effort to assuage national fears and reinforce that the measure is precautionary, the Prime Minister has said he will still be attending his weekend footy.

Meanwhile, events such as the Sydney Writer’s Festival and the Sydney Royal Easter Show have now been cancelled.

The market reaction seems to be the inverse of what one would expect from such news; the suspension of mass-gatherings will naturally strike a blow to many key sectors of the economy. As such, it seems any form of government action itself is sparking confidence among investors.

Of course, the mass-gathering advice is not the only impactful news from this afternoon. Other stimulating measures include the RBA injecting $8.8 billion into the Australian financial system to give it a much-needed boost.

The finance sector was 10 per cent in the red at lunchtime but closed 3.73 per cent in the green. Our big four banks led the afternoon rally. Commonwealth Bank ended the day 5.15 per cent higher as the pick of the litter, with ANZ the runner up at a 2.96 per cent green close. Westpac closed 2.14 per cent up and NAB 1.54 per cent up.

Throughout the horror morning, health care stocks were performing the strongest but still posting heavy losses. Come market close, the sector closed a whopping 10.6 per cent green. Hearing specialist Cochlear spearheaded the comeback with a 21.08 per cent rise. Biotech heavyweight CSL was close behind as it gained 11.88 per cent.

The materials sector almost missed out, but a literal last-minute rally tipped the sector 2.57 per cent green. BHP ended the day up by 1.48 per cent and Rio Tinto up 4.75 per cent.

Meanwhile, drinks are on Andrew “Twiggy” Forrest tonight after he snatched up a fresh 22 million shares in Fortescue Metals yesterday, forking out $242 million for the purchase at the low prices. The buy-up helped the company stave off the worst of the morning losses, and with the afternoon bounceback, the iron ore miner gained 12.97 per cent.

The volatile technology sector joined in the green close, led by Xero’s 7.95 per cent gain. While Afterpay missed out and declined 2.68 per cent, Computershare and WiseTech surged ahead and gained 1.93 per cent and 5.18 per cent, respectively.

Over east, Asian markets haven’t yet been so lucky. When the ASX closed, the Asia Dow was down 1.04 per cent, Japan’s Nikkei 225 3.73 per cent, and Hong Kong’s Hang Seng 1.8 per cent.

Meanwhile, gold remains unsure of its place in a turbulent market, dipping 0.47 per cent into the red by the end of the Aussie session. Crude oil futures, however, posted an unusual (albeit small) spike come close. Brent prices are up 0.73 per cent to trade at $31.73 a barrel.

The Australian dollar has bounced back and currently buys 63.10 US cents, 50.27 pence, and 10.33 South African Rand.

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