Australian shares plunge again as Dow hits lowest level since 1987 crash; Virgin slashes flights, Flight Centre to close stores

Australian shares have tumbled more than seven percent after Donald Trump's shock travel ban between Europe and the US has exacerbated steep falls on global sharemarkets. 

On Wall St, the Dow Jones Industrial Average ended 9.9 percent lower in the worst single day percentage fall since the 1987 sharemarket crash.  

Virgin Australia has slashed capacity and Flight Centre will close 100 stores. 

ABC's Peter Ryan with the latest.

Trump travel ban prompts market meltdown as Dow hits lowest level since 1987 crash, Federal Reserve pumps US$1.5 trillion into system as fear index surges

Donald Trump's shock travel ban between Europe and the US has exacerbated steep falls on global sharemarkets. 

On Wall St, the Dow Jones Industrial Average ended 9.9 percent lower in the worst single day percentage fall since the 1987 sharemarket crash. 

Fears are rising that fallout from the coronavirus could trigger a new global financial crisis. 

ABC's Peter Ryan with the latest.

Coronavirus stimulus seen as measured, responsible - if households spend rather than save

Economist Warren Hogan says the major challenge for Scott Morrison's emergency stimulus is to ensure households spend the $750 handout rather than use it to pay down debt. 

But Professor Hogan tells ABC's Peter Ryan that the Prime Minister has sent the message that he is in control.

Reserve Bank deputy governor Guy Debelle says economy will bounce back from coronavirus hit

The RBA says lower interest rates as well as the Federal Government's pending stimulus package will cushion the economic impact of coronavirus, and Australia will bounce back quickly once the virus is contained. 

Deputy governor Guy Debelle says iron ore and coal exports are likely to benefit with Chinese authorities expected to unleash massive economic stimulus.

Here's my analysis from The World Today

Uneasy calm in Australia as PM outlines emergency stimulus plans; Qantas cuts more capacity, puts staff on paid leave

An eerie but cautious calm has descended over the Australian sharemarket after the worst global selloff since the depth of the global financial crisis. 

But Australian stocks have so far avoided the steep plunge on Wall Street earlier today but the dual forces of the coronavirus and an oil price shock has investors bracing for more wild swings amid fears of a global recession. 

With nerves taking grip in Australia, the Prime Minister Scott Morrison has urged businesses to do what it takes to keep staff on as Qantas puts workers on paid leave to stave off redundancies.

ABC's Peter Ryan with the latest

Wall Street in 8 percent coronavirus plunge as oil price collapses; former Labor Treasurer Wayne Swan calls for decisive action on emergency stimulus

Global sharemarkets are in the midst of the deepest shock since the financial crisis a decade ago as the coronavirus and an oil price crash strike fear and panic into investors. 

Wall Street has plunged a massive eight percent following similar heavy selling across Europe. 

Prime Minister is outlining his emergency stimulus plan to protect businesses and to keep consumers spending. 

Former Labor Treasurer Wayne Swan tells ABC's Peter Ryan the current government needs to "act decisively".

Golden opportunity - Gerry Harvey says coronavirus stimulus a boost to local business

Businesses are bracing for the impact of a possible global downturn fuelled by the coronavirus and the rising probability of a recession here in Australia later this year. 

With the forecast budget surplus now almost certainly toast, Treasurer Josh Frydenberg is preparing to roll out an emergency stimulus package perhaps this week to keep businesses open and consumers spending. 

But businessmen Gerry Harvey tells ABC's Peter Ryan says the crisis is an opportunity to help revive local companies who've been hurt by cheap imports from China.