Stock markets continue to fall as a result of the corona virus, while FTSE 100 falls by 0.8% and the German Dax falls by 2% after Wall Street lost the worst two-day streak two years ago
- The FTSE 100 index has now fallen below 7,000 for the first time in more than a year
- Nearly £ 100 billion has been swept away from the value of British blue chip companies
- The stock markets in the US, Germany and France also plummeted this week
Equity markets continued to fall today after the fear of coronavirus in the US caused the worst two-day loss street strike on Wall Street in two years.
The FTSE 100 index in London fell by a further 0.8 percent, bringing the total of British blue chips to nearly £ 100 billion since the beginning of the week.
The FTSE has now fallen below 7,000 for the first time in more than a year, while the Dax in Germany and Cac 40 in France have fallen by no less than two percent.
The declines across Europe come after another tough session in the US markets, with the Dow Jones Industrial Average and Standard & Poor’s 500 both ending three percent lower in the second consecutive day of sharp declines.
Experts warned that there were no signs of a stock market turmoil because the reality of the virus spread across the stock markets.
Global stock markets suffer losses as the corona virus spreads worldwide. Depicted: A pedestrian walks past a display with global stock markets throwing themselves outside of a securities office in Tokyo, Japan
Graph showing losses on the Wall Street Dow Jones market since trading started on Monday
Losing on the Cac 40 in France this week since trading started on Monday
The shares on the Dax in Germany have also fallen considerably since trading started on Monday
The number of coronavirus cases has risen worldwide by more than 80,000 with more than 2,700 deaths and the deadly infection threatens to persist in Europe following a major outbreak in Italy.
The US has also been affected by several confirmed cases.
Authorities in Italy reported Tuesday evening that the number of infected people in the country had increased to 322 – a 45 percent increase in 24 hours – and the number of deaths rose to 11.
In another sign of the impact on businesses and the economy, beverage giant Diageo became the newest controversial company that warned of the financial impact of the outbreak when it hit the sales of its tipples.
The gin of Gordon and the rum maker of Captain Morgan warned this year for a profit of up to £ 200 million from coronavirus.
Demand has been broken throughout China, where the outbreak began, as bars and restaurants have closed, while sales in the rest of Asia-Pacific also declined during a decline in conferences and banquets.
Shares in the company fell two percent after the warning.
Russ Mold, investment director at AJ Bell, said, “The equity correction reflects the reality that the impact of this outbreak is likely to be profound and will put pressure on corporate income and income.”
Jasper Lawler, head of the LCG investigation, said investors were rushing to the exit because “no one is willing to” catch a falling knife.
He added: “We have now had two seismic declines in global stock markets.
“Short-term traders may opt to put their teeth into a short rally, but we get the impression that institutional investors are essentially reassessing their outlook for equities.”
Travel shares and airlines were again among those most affected by the London sales, with holiday company Tui and low-cost airline easyJet having a third day in a row with substantial declines – four and three percent lower respectively.
Energy companies and financial groups were among a small handful of FTSE 100 risers as investors looked for more defensive stocks to drive down market declines.
Lender HSBC was two percent higher, while energy giants SSE and British gas owner Centrica each won one percent.
The deadly corona virus is affecting stock markets around the world as the virus spreads
The corona virus threatens to spread across Europe with cases in different countries