FTSE 100 loses £143bn as WHO declares coronavirus is at a ‘decisive point’
The FTSE 100 has lost £143bn this week after a string of heavy losses prompted by a worsening of the coronavirus outbreak outside of China.
London’s blue-chip index plunged 3.5 per cent to 6,791 points after the World Health Organisation (WHO) warned that the virus is at a “decisive point” and has “pandemic potential”.
The FTSE 100 was not the only index in the red as European stocks slumped four per cent, entering correction territory, as the number of cases outside China spiked.
The pan-European Stoxx 600 index has fallen more than 10 per cent over the past week after reaching a record high on 19 February.
Germany is considering a fiscal stimulus programme should the coronavirus situation deteriorate and hit the economy hard, according to Handelsblatt.
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Global stocks have lost £2.6 trillion just this week amid sustained coronavirus concerns, while global equities have dropped for six straight days of trading.
“This is one of the worst weeks in recent memory – and terrifyingly, it’s not over yet. Friday is a tricky proposition. Will the vultures swoop in, picking over the market’s carcass in search of relative bargains? Or will the sheer momentum of Thursday’s losses turn tomorrow into another bloodbath?” said Connor Campbell, financial analyst at Spreadex.
In the US the Dow Jones plunged 900 points and is trading at 26,050 around 3,400 points off where it was a week ago.
“From the unshakeable optimism seen at the beginning of the year, investors have done a complete U-turn switching from excessive optimism to outright pessimism in less than a week,” said Michael Hewson, chief market analyst at CMC Markets.
Iran confirmed its 26th fatality from the virus today, making it the highest number outside of China with the number of people infected now at 245.
Iranian officials announced the first deaths and cases of the coronavirus as recently as last week.
WHO’s Dr Mike Ryan said today that Iran’s 10 per cent death rate has more to do with surveillance which is not picking up mild coronavirus cases yet.
WHO officials also said they are working closely with organisers of the Tokyo Olympic Games and do not believe any decision would be taken soon on whether to hold the event which is due to start in July.
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