FTSE 100 drops 3% as fears over spread of coronavirus intensify

FTSE 100 drops 3% to 5,148 as emergency government moves to support companies fail to calm investors’ fears over coronavirus

  • FTSE 100 index of Britain’s biggest firms falls 146 points or 2.8% to 5,148 today
  • Panic overshadows sweeping measures revealed by US and UK governments 
  • Politicians are trying to support businesses and contain the economic damage 
  • Investor sentiment in Europe has been crushed in past month amid lockdowns 
  • Coronavirus symptoms: what are they and should you see a doctor?

The FTSE 100 plunged again on opening today as fears over the relentless global spread of the coronavirus intensified.

Stock markets dropped further as panic over the virus overshadowed sweeping moves from the US and UK governments to try to support companies and contain economic damage from the pandemic.

The FTSE 100 index of Britain’s biggest companies fell 178 points or 3.4 per cent shortly after opening to 5,117 today. 

Investor sentiment in Europe has been crushed over the past month as countries imposed lockdowns to halt the spread. 

Dealers at KB Kookmin Bank look at the Korea Composite Stock Price Index in Seoul today

Similar falls were seen in Europe this morning, where Frankfurt’s DAX 30 tanked 4 per cent to 8,581 points and the Paris CAC 40 dropped 2.3 per cent to 3,898 points.

US stock futures slid 3.7 per cent in Asia overnight, a day after the S&P 500 rose 6 per cent to 2,529 and the Dow Jones gained 5.2 per cent to 21,237.  

The FTSE 100 has fallen about 30 per cent since coronavirus fears really began to grip investors on February 24, although it did rebound yesterday by 2.8 per cent.

Ed Monk, associate director from Fidelity Personal Investing’s share dealing service, said: ‘The damage to the corporate world from the COVID-19 outbreak is beginning to be laid out via a host of warnings to the stock market this morning.

THIS WEEK: The FTSE fell on Monday (left), rebounded yesterday (centre) and fell today (right)

THIS WEEK: The FTSE fell on Monday (left), rebounded yesterday (centre) and fell today (right)

‘Along with airlines and travel, hospitality will be among the first hit. Brewer Marston’s, Wagamama owner The Restaurant Group and Revolutions Bars all warned that trading will be significantly impacted this year.

‘Fashion retailer Superdry also confirmed that not only will it not meet profit guidance issued as recently as January, but that it will now not issue guidance for this year.

‘Software firm MicroFocus confirmed that it will now not pay a final dividend. Even supermarket Morrisons – which is in a sector that enjoys some insulation in the crisis – confirmed that a planned special dividend now won’t be paid.’

Italy’s prime minister yesterday declared the virus was causing a ‘socio-economic tsunami’ as European leaders agreed to seal off external borders. 

PAST MONTH: The FTSE 100 has collapsed since fears over the virus intensified on February 24

PAST MONTH: The FTSE 100 has collapsed since fears over the virus intensified on February 24

Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, said: ‘Right now the predominant concern is that all the shutdowns of just about everything is going to lead to a recession.

‘The sentiment is being dominated by those fears far outweighing everything else.’

Following dramatic monetary policy easing by some of the world’s biggest central banks earlier in the week, US President Donald Trump pressed yesterday for a $1trillion stimulus package, while many other governments looked to fiscal stimulus. 

European airlines and energy firms have been among the biggest decliners as the health crisis halts nearly all travel, crushes oil prices and cripples company finances.

Women walk in front of a quotation board displaying Tokyo Stock Exchange share prices today

Women walk in front of a quotation board displaying Tokyo Stock Exchange share prices today

The Government has been urged to do more to support the poorest members of society in the wake of the outbreak after allegations the Chancellor’s £350 billion package did ‘nothing’ to protect home renters and those on low incomes.

Rishi Sunak vowed to do ‘whatever it takes’ to buoy the economy when he revealed his ‘unprecedented’ fiscal cannon yesterday, as the number of people thought to have the virus in the UK rose to 55,000 and the official death toll climbed to 71.

Yet his package of measures designed to protect businesses was criticised after it failed to acknowledge financial means of supporting those in rental accommodation and people on low incomes amid concerns over potential job losses.

Read more at DailyMail.co.uk