Wall Street plummets as coronavirus spreads in Europe – as it happened

US, European and Asian stock markets gripped by pandemic fears

• Mid-afternoon summary: Wall Street down 3%, Italy's FTSE MIB loses 5.7%
• Italian stocks plummet as death toll rises
• Crude oil falls 4.85% on expectations of lower demand
• Gold hits seven-year high and bonds gain as investors seek havens
• Easyjet, Tui and British Airways owner among the biggest losers

4.42pm GMT

That means 62bn was wiped off the FTSE 100 during today's session, representing a heavy loss for the first trading day of the week.

We'll be back tomorrow from 8am. -KM

4.36pm GMT

European markets have closed for trading, with all major indices having lost 3.5% or more:

4.29pm GMT

It's a sea of red across global markets.

But European stocks are the biggest losers, with Italy's FTSE MIB still the worst performer.

4.08pm GMT

More than 63bn has been wiped off the FTSE 100 so far today, though we still have about 20 minutes of trading to go.

3.59pm GMT

Oil prices have taken another tumble, with Brent crude now down 4.8% or $2.86 per barrel at $55.64.

3.50pm GMT

The FTSE 100 continues to lose ground and is now at its lowest level since early October 2019.

Richard Hunter, head of markets at Interactive Investor, explains that London's blue chip index is suffering due in part to the slump in oil and mining stocks, which rely on Chinese demand for a good chunk of their growth.

For the UK, the FTSE100 has been a particular target for investors and stands down over 5% in the year to date, given its particular exposure to oil and mining as well as the obviously affected areas of tourism and travel.

By the same token, and perhaps of some consolation to longer-term investors looking for an entry point, is the reminder that mark downs such as this can be indiscriminate as sentiment deteriorates, and that there will be certain sectors which will be less affected by the outbreak.

3.33pm GMT

This is the biggest slump in European shares since the middle of 2016, according to Reuters.

But in what looks like an attempt to avoid panic, the World Health Organisation has issued fresh statements clarifying that they're still not categorising the coronavirus outbreak as a "pandemic" just yet.

Using the word pandemic does not fit the facts

We must focus on containment while preparing for a potential pandemic

2.53pm GMT

Shares on Wall Street have plummeted at the opening bell and European markets are also a sea of red, with the Italian market the worst hit, amid reports of rising deaths from the coronavirus in the country.

2.38pm GMT

The turmoil in financial markets comes as there are reports of more deaths in Italy, which is at the centre of the coronavirus crisis in Europe. A seventh person has died in the country, according to the Ansa news agency.

2.36pm GMT

The falls on Wall Street have dragged the MSCI world stock index into negative territory for the year so far. It's down 2.7% on the day.

2.32pm GMT

Wall Street has opened sharply lower - even worse than expected. The declines come after US indices hit record highs last week.

2.25pm GMT

A quick look at the markets before Wall Street opens. Stocks and oil have tumbled further.

Sea of red getting a darker shade of red as US markets open

FTSEMib -5.5%
FTSE100 -3.8%
DAX -4.2%

2.07pm GMT

As the virus spreads in Europe, investors are dumping stocks and rushing into safe-haven assets such as gold (at a seven-year high today). Futures are pointing to sharp declines on Wall Street when it opens for trading in less than half an hour. The Dow Jones is expected to open 800 points lower.

Last week, Wall Street's main indices rose to record highs as optimism spread among investors that the global economy would bounce back from the coronavirus hit.

2.03pm GMT

There has been a sixth death from the coronavirus in northern Italy, according to the state broadcaster RAI.

1.38pm GMT

Economists at ING have looked at the impact of the virus outbreak on economies in Asia, in a note entitled: "Holidays in hell: slumping tourism will cost Asia $105bn-$115bn in 2020".

Robert Carnell, chief economist and head of research, Asia-Pacific, at ING says:

The impact of the coronavirus on economies in Asia is potentially huge, as tourism in the region takes a beating... If we assume that tourism to and from China basically grinds to a halt in 2020, and extra- regional tourism also diminishes, then the cost to the region from lost tourism revenues alone is approximately US$105bn-$115bn.

1.28pm GMT

The World Health Organization has praised China for the measures it's taken to stop the coronavirus spreading. Bruce Aylward, the head of a visiting WHO delegation, said the "incredibly difficult measures" probably prevented hundreds of thousands of cases in the country.

He also said several data sources suggested there is a general downward trend in the number of of infections being reported by China's National Health Commission, despite some statistical problems.

12.53pm GMT

The German business association BDI says several manufacturing sectors are expecting a shortage of supplies from the Far East in coming weeks due to the coronavirus. Affected sectors include engineering, cars, pharmaceuticals and paper.

BDI says:

The more than 5,000 German companies in China are currently severely restricted in procurement, production and sales.

12.28pm GMT

HSBC's search for a permanent chief executive may have suffered a setback today, after one of the reported candidates pulled out.

[T]he Group would like to state that Jean Pierre Mustier confirms he will remain with the bank.

UniCredit would also like to remind everyone that it has just launched a new strategic plan, Team 23, and that the whole management team, including Jean Pierre Mustier, is fully focused on its successful execution.

12.07pm GMT

An interesting point from influential economist Mohamed El-Erian, who serves as chief economic adviser at Allianz, the insurer.

Stock markets have been on a tear in recent months even as economic fundamentals have appeared weaker. The coronavirus outbreak could test that divergence - particularly given central banks' limited arsenal.

.#CoronaVirus shock is a test of the technicals (FOMO/Buy-The-Dip conditioning) that helped #stocks overcome fundamentals/valuations headwinds.
A key element is whether #markets distinguish between #CentralBanks' willingness (high) and ability (low) to counter the economic shock.

12.00pm GMT

A quick Brexit update via the politics live blog: don't bet on everything being finished by the new year.

Ami(C)lie de Montchalin, the French Europe minister, on Monday said that France will not sign up to a bad trade deal with the UK just to meet Boris Johnson's December 2020 deadline. Johnson has set this deadline by ruling out an extension to the post-Brexit transition.

Je serai i Bruxelles demain et i Londres vendredi avec un message #Brexit clair : ce n'est pas parce que Boris Johnson veut un accord coite que coite le 31/12 que nous signerons sous la pression du chantage ou du calendrier un mauvais accord pour les Franiais. #Les4V @France2tv pic.twitter.com/v9VU8zPyaE

Related: France warns UK it will not be blackmailed into a risky EU trade deal

Related: Brexit: France says it will not sign up to bad trade deal with UK just to meet Johnson's deadline - live news

11.52am GMT

Investors are pricing in an increased chance of the European Central Bank cutting interest rates in the coming months. A rate cut would aim to support growth at a time when the coronavirus outbreak adds to risks to the eurozone economy.

Reuters reported:

Eonia money market futures dated to the ECB's July 2020 meeting show about 5 basis points [0.05 percentage points] of rate cuts are now priced in, up from 3.5 bps a week ago. That equates to roughly a 50% chance of a 10-bps cut versus 35% last week.

It marks a turnaround from the start of 2020, when a stabilisation in data had led to a view that the ECB might be encouraged to start raising rates from next year.

11.27am GMT

What does the most successful investor in modern history think about the coronavirus outbreak, amid market turmoil? Ignore the headlines.

If you're buying a business you're going to own it for 10 years, or 20 years, or 30 years. The real question is has the 10-year or 20-year outlook for American businesses changed in the last 24 hours or 48 hours?

You don't buy or sell your business based on today's headlines. If it gives you a chance to buy something that you like and you can buy it even cheaper it's your good luck, basically.

Futures plummet 800+ points on #coronavirus fears
Here's what Warren Buffett has to say about the sell-off:#AskWarren pic.twitter.com/esUFXX5FBv

10.56am GMT

Coronavirus fears are pushing European shares on the Stoxx 600 towards their worst day since 2016 - the aftermath of the Brexit referendum.

The falls suggest that investors are starting to price in a direct hit to European economic growth that could hurt company profits. Central banks are already watching carefully.

10.35am GMT

The renewed concerns on the spread of the coronavirus have pushed oil prices back down - ending a relief rally over the middle of February.

The price of futures for Brent crude oil, the North Sea benchmark, have fallen by $2 per barrel to $56.40 - a steep 3.6% decline. Futures prices for its North American counterpart, West Texas Intermediate, also declined by 3.5%.

Travel restrictions and factory shutdowns caused by Covid-19 are already leading to big problems for oil-producing countries. We believe the virus' effect on oil demand will shave some 400,000 barrels a day from global consumption growth, taking us to the lowest level in nearly a decade.

10.27am GMT

Another aspect of the flight to safe havens is visible on currency markets, with the demand ascent of the US dollar.

Sterling has lost 0.5% against the dollar on Monday. One pound bought $1.2909 at the time of writing.

10.20am GMT

Smoking kills half of all people who take it up, but Philip Morris International (PMI) wants to be seen as part of the solution even though the company continues to make and market cigarettes around the world.

Related: Philip Morris drew up plan for 1bn tobacco transition fund

10.00am GMT

A large dose of scepticism on that fairly positive reading from Germany on the business climate: economists are essentially saying that the worst is yet to come.

Better expectations from industry are usually bullish sign, said Samuel Tombs, chief UK economist at Pantheon Macroeconomics, but it's difficult to interpret these data at the moment.

As we type, global-and in particular EZ-equities finally have woken up to the fact that what has been very draconian measure in China to curb the spread of the virus-at least from the point of view of the economy-are now spreading to the rest of the world.

News over the weekend that several towns in Northern Italy have been effectively shut down - and air and rail traffic suspended between Italy and Austria - seems to have been the straw that broke the camel's back. In short, financial markets are now starting to price in an increasingly nasty economic shock at the start of 2020.

With the virus now at the gates of Europe, with the the spate of new cases reported in Italy, survey data are very likely to deteriorate rapidly in coming months.

A worsening of hard eurozone data is likely to follow since the fragility of global supply chains means even small disruptions in China's output could still have large repercussions for Europe down the line.

9.36am GMT

It's now a 3.3% fall for the FTSE 100. It is down by 244 points, to 7,158 points.

As you can see from the following chart of daily performances over the past year, it's quite a striking fall.

9.30am GMT

We mentioned earlier that investors were seeking safe-haven assets. It appears to be a full-on pivot away from riskier assets this morning, with money flowing to bonds.

The yield on the UK's 10-year gilt has fallen by 7 basis points (0.07 percentage points) to hit three-week lows of 0.508%. Bond yields, which move inversely to prices, have fallen as more investors look for less risky assets like government debt.

Here we go! An all-time high for the US long bond..... https://t.co/RXeoYTIr4b

9.21am GMT

An interesting reading from the Ifo Institute in Germany: its widely followed business climate indicator has actually beaten expectations - a reminder, perhaps, that the much of the coronavirus's financial effects so far are down to fear, uncertainty and doubt.

The Ifo's business climate reading came in at 96.1 points, compared with a Reuters consensus forecast for a fall to 95.3. The institute is sticking to its first-quarter growth forecast of 0.2%. Ifo president Clemens Fuest said in a statement:

The German economy seems unaffected by developments surrounding the coronavirus.

8.49am GMT

That FTSE 100 selloff has deepened: it's now down by 2.8%, more than 200 points.

Germany's Dax is down by 3.4%, France's Cac 40 has lost 3.5%, and the FTSE MIB in Italy has dropped by 4%.

8.47am GMT

Here's a handy heat map from Hargreaves Lansdown showing which stocks have fallen: it's almost all of them. Some 96 of the FTSE 100 were down at the time of writing.

Mr Staley, 63, who has led the bank since December 2015, has told colleagues he expects to leave the group by the end of next year, according to two people briefed on the bank's plans. He could stand down at the annual meeting in May 2021, they added.

A rough timetable for Mr Staley's departure was in place before Britain's top financial regulators recently launched an investigation into his ties to Jeffrey Epstein, the paedophile financier. But one of the people said the probe had "focused minds" on the bank's board of directors and injected a sense of urgency into the process.

8.31am GMT

Take a look at the biggest fallers on the FTSE 100: it's companies exposed to European tourism that are most affected.

8.22am GMT

The flight to safety for investors fearful of the economic consequences of the coronavirus outbreak has pushed gold prices to their highest since February 2013.

Spot gold prices rose by 2.1% on Monday to hit highs above $1,679 per troy ounce.

8.16am GMT

A quick diversion from coronavirus: a shakeup in the UK's struggling estate agency sector.

Related: Estate agents Countrywide and LSL in talks over 470m merger

8.12am GMT

If you need an indication of why Italy is bearing the brunt of stock market losses this morning, here's why Bank of Italy governor Ignazio Visco has warned that the outbreak could wipe a quarter of a percentage point from Italy's economic growth this year.

"I'm already worried now but if we don't see a material improvement by September, I'd be really worried," Visco said. "You need two quarters to realize and understand."

Visco lent weight to his argument by warning there's a risk of a "mini de-globalization" if pessimism and fears about further supply-chain interruptions leave the economy suffering for a protracted period. "This shouldn't be ignored."

8.05am GMT

Renewed fears over the coronavirus outbreak have prompted steep falls on European stock markets - most notably in Italy, which has suffered the most serious outbreak outside Asia.

In Milan the FTSE MIB fell by 3.4% in early trading.

7.33am GMT

Good morning, and welcome to our live coverage of economics, business, the eurozone and international markets.

The coronavirus outbreak has gained pace outside of China, and stock markets in Europe are expected to react heavily. The World Health Organisation on Sunday reported 78,811 confirmed cases, but 367 new cases came outside China, a larger proportion than previously.

We typically build inventories in advance of Chinese New Year and, as a consequence, are well stocked with cover for several months and do not expect any short-term impact

If delays to factory production are prolonged, the risk of supply shortages on some lines later this financial year increases. We are assessing mitigating strategies, including a step up in production from existing suppliers in other regions.