The SPI200 futures contract was down 153 points, or 2.24 per cent, at 6,673 at 0700 AEDT on Wednesday, pointing to another sharp fall when the local market opens.
Local stocks lost $37.8 billion in value on Tuesday in the Australian share market’s second worst day of 2020, following Monday’s 2.25 per cent plunge.
It was followed by a sell off overnight on US markets after the US Centres for Disease Control and Prevention said Americans should begin to prepare for community spread of the new coronavirus.
Oil prices also continued their fall on fears of a demand hit from the flu-like virus that has infected more than 80,000 people.
The Australian dollar was buying 66 US cents at 0700 AEDT on Wednesday, down from 66.12 US cents on Tuesday.