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The ASX miraculously managed to gain more than 3.1%, as US tax cuts are considered

Jack Derwin

The Australian share market has rallied remarkably in the final minutes of Tuesday's session to end 9% away from where it was expected to land.

With futures trading indicating a 6% loss before 10am, the ASX lost around 3.8% or $70 billion, before surging to end 3.11% higher than where it began.

It came after a horror Monday on global markets, with more than 7% wiped from both Australia's market as well as Wall Street, amid coronavirus fears and an oil price in free fall. Both factors likely exacerbated market fears and helped push investors to sell. However, the damage was reversed as quickly as it began, with the market eliminating its losses by midday before rallying into the afternoon.

News of US fiscal stimulus involving payroll tax cuts may have helped inspire some confidence, with S&P 500 futures ticking into positive territory during the Australian session. US President Trump said his administration would create loans to assist businesses, including those in the airline, cruise and hotel industries, who have been hardest hit.

So too may have Chinese President Xi Jinping's visit to Wuhan, the coronavirus epicentre. Xi had been noticeably absent from public appearances for some weeks during its spread, so his faith in meeting frontline health workers was received as a strong indication China may have successfully contained the outbreak.

Australian investors will now look to see how Wall Street fares on Tuesday night to see how long the calm lasts.