Stock markets free-falling as outbreak restrictions grow globally
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Stock markets are on course for another day of heavy losses as concerns mount the coronavirus crisis will lock down global economic activity for an extended time.
US futures tumbled while Asian and European markets went into a sharp reverse gear, with the FTSE 100 hitting levels not seen since June 2012, after Donald Trump announced a 30-day ban on flights to the country from most of Europe, excluding the UK, to help control the spread of COVID-19.
Market analysts said the latest declines, which also followed the official declaration of a pandemic by the World Health Organisation, marked a new front in the rush for safe havens of recent weeks.
A lack of detail on promised US government help, including tax breaks, was partly blamed for the Dow Jones Industrial Average entering so-called bear market territory on Wednesday – that is 20% below its peak within just a matter of weeks.
It lost almost 6% on the day and was seen falling a further 5% on Thursday.
Asia took the lead from Wall Street with the Nikkei in Japan and Hong Kong’s Hang Seng both tumbling by around the 4% mark.
Germany’s DAX and the CAC in Paris were almost 7% down in early deals in a bloodbath for values in Europe – with Norway revealing it could even close airports down to help get a tighter grip on infection rates.
Airline and travel stocks on the FTSE 100 in London built on earlier losses as the index fell by 6.7% at one stage – taking values to 5482 points – a level not seen since June 2012 during the eurozone debt crisis.
Its value has taken a pounding of 28% since January.
