US and UK stock markets plunge as coronavirus panic hits shares — as it happened

Graeme Wearden

from on 2020-02-27 22:43 (#4ZY7A)

Markets around the world are being spooked by the coronavirus crisis

10.43pm GMT

Time for a quick recap

Financial markets have suffered fresh, heavy losses, as the coronavirus crisis escalates - threatening to cause major economic disruption.

Via Reuters.

That's a significant outbreak in California #OOTT #coronavirus pic.twitter.com/UWgRBrB4aY

10.33pm GMT

The sell-off is heading back round to Asia-Pacific markets, where shares are expected to fall heavily on Friday.

Hold onto your hats, it's going to a be a bumpy open!
APAC Opening Calls:#ASX 6470 -2.64%#NIKKEI 21251 -3.27%#HSI 25980 -3.13%#NIFTY 11416 -1.49%#CSI300 3950 -2.78%#IGOpeningCall

10.05pm GMT

Investors are very worried about large coronavirus outbreak occurring in the US, now that California is monitoring 8,400 people (it emerged earlier).

Kyle Rodda of IG explains:

Panic in global markets has escalated, still on fears that the coronavirus is rapidly evolving into a global pandemic. Market volatility is particularly high, with the VIX hitting as high as 33. That's sent stocks plunging even further, with many of the world's major benchmark indices entering what's considered in technical analysis a "market correction". Naturally, the demolition of risk-appetite has seen traders flee to safe-havens, many of which have traded at historically significant levels.

The catalyst for the latest deterioration in market sentiment has been the burgeoning belief that the coronavirus has arrived on US shores. Several reports broke in the last 24 hours suggesting that the possible cases of the disease has spiked, and has become spread wide across the country. A press conference held by US President Trump failed to quell concerns. Instead, traders have latched onto this morning reports that the state of California is monitoring 8,400 for the virus.

9.59pm GMT

With stocks plunging, and government bond yields (interest rates) at record lows, the markets are sending a very worrying signal.

"Stocks and bonds say we're doomed," said Chris Rupkey, chief financial economist for MUFG Union Bank (via Bloomberg).

9.36pm GMT

US tech stocks have had their worst day in eight years, Bloomberg reports:

The Nasdaq Composite Index sank 4.6% to 8,566.48, the lowest in almost 12 weeks on the largest tumble in more than eight years.

9.32pm GMT

This is Wall Street's worst day in two years, reports CNBC:

Thursday marked the Dow's biggest one-day points decline in history. The S&P 500 also closed below 3,000 for the first time since last October.

Those losses put the Dow, S&P 500 and Nasdaq in correction territory, down more than 10% from their record closes. It took the Dow just 10 sessions to tumble from its all-time high into a correction. The S&P 500 and Nasdaq set record highs last week

9.13pm GMT

STOCKS PLUNGE:

S&P -4.4%
NASDAQ -4.6%
Dow -1196 pointshttps://t.co/PZ5cfTFjzK pic.twitter.com/ATRAux8Kv7

9.10pm GMT

Newsflash: the Dow has posted its biggest points drop ever, shedding another 1,200 points in a late burst of selling before the closing bell.

More than 4% has been lost today, following big losses earlier this week.

AT THE CLOSE: Dow and S&P 500 post worst intraday point decline ever pic.twitter.com/enXNKtiblc

8.59pm GMT

Heavy losses on Wall Street:

US Equity Heap Maps

SPX -2.90%
DJI -2.96%
NDX -3.55%
MID -2.21% pic.twitter.com/RPuuCMBgD8

8.47pm GMT

The sell-off is accelerating in late Wall Street trading.

This is pushing the Dow down by another 3.5% today, or over 900 points....

Dow down more than 900 points heading into the close pic.twitter.com/NBTY39lAAp

7.56pm GMT

Scott Minerd of financial services firm Guggenheim Partners is very concerned about coronavirus, and its impact on the markets and the global economy.

He told Bloomberg TV that "this is possibly the worst thing I've ever seen in my career", a time-span which includes the 1987 crash and the 2008 financal crisis.

"This has the potential to reel into something extremely serious...

"It's very hard to imagine a scenario where you can actually contain this thing, and so that's the thing that to me is very frightening."

Hotels in New York are empty. Airlines.. people are not travelling. It's a demand shock [as well as a supply shock]

Guggenheim's Scott Minerd says the coronavirus crisis is possibly the worst thing he's ever seen in his career: "This has the potential to reel into something extremely serious" pic.twitter.com/xLhhNm3u7t

7.46pm GMT

As things stand, the Dow Jones has shed 2,600 points so far this week -- or roughly 9% of its value.

So the Dow will be down/is down something like -2,600, or -9.1% this week, off the coronavirus scare. Life comes at the markets fast

7.38pm GMT

Here's the scene on the New York stock exchange floor this afternoon, amid another volatile session:

7.17pm GMT

Back in the UK, Northern Ireland has just reported its first confirmed case of coronavirus, taking the total number of UK cases to 16. Our main news liveblog has all the details.

7.06pm GMT

Earlier today, French president, Emmanuel Macron warned that France was on the brink of a coronavirus epidemic.

My colleague Peter Beaumont explains:

With new evidence of unexplained cases of transmission emerging in Spain, Germany and France, the mounting public health crisis on the continent forced the cancellation of public events from Geneva to Greece, including sporting events, carnivals and trade conventions amid further sharp stock market falls and disruption to European travel.

"We are facing a crisis, an epidemic that is coming. We know that certain countries are already much more affected than us," Macron said while visiting staff at the Pitii(C)-Salpitriire hospital in Paris, where the first French victim of the virus, a 60-year old teacher, died on Tuesday night.

6.52pm GMT

Ut oh. Wall Street is on the slide again.

The Dow Jones industrial average is down another 2% today, 570 points lighter at 26,387.

California is currently monitoring 8,400 people for coronavirus, per Governor Newsom. https://t.co/j8tqMxlrqx

6.14pm GMT

Back on Wall Street, stocks are attempting a bounce-back.

The Dow Jones industrial average is now just 213 points down, or 0.8%, at 26,744.

Vice President Pence's office says he has added three people to the Coronavirus Task Force: Steven Mnuchin, Secretary of the Treasury; Dr. Jerome Adams, Surgeon General of the United States; Larry Kudlow, Director of the National Economic Council.

That's in addition to coordinator Dr. Deborah Birx, announced earlier today.

5.53pm GMT

Nearly every stock on the FTSE 100 fell today:

5.41pm GMT

The stock market slump is now an opportunity to buy shares.

So argues JP Morgan's chief US equity strategist, Dubravko Lakos-Bujas, who thinks central bankers and politicians will take steps to support growth, boosting markets.

While it is easy to turn cautious on the market after a ~10% drop, we argue investors should not discount the benefit of announced and unannounced global policy responses that are likely to outlast the impact of COVID-19.

JPMorgan said it's time to buy the dip, betting on a short-lived impact from the coronavirus and "potential Fed insurance cuts."

The bank is sticking with its bullish market forecast, with a year-end S&P 500 target of 3,400, ~10% rise from here.https://t.co/mv4YLX7Cga

5.36pm GMT

Streaming service Netflix is defying the selloff, and has jumped by 2.3% today.

Indeed, it's up a fifth this year -- as investors conclude that it could profit from the coronavirus. If people are afraid to go to the cinema, or not allowed into work or school, they'll end up watching TV instead.

#Netflix is this year's undisputed FAANG winner as stock will do quite well despite coronavirus and recession fear. Has gained 20% ytd vs Facebook's -6% pic.twitter.com/qo6OfBO9Ax

5.34pm GMT

The coronavirus poses a clear threat to Europe's fragile recovery, fears Ritu Vohora, equities Investment Director at M&G Investments.

She writes:

"The coronavirus outbreak has replaced trade wars as the dark storm bearing on markets, sending jitters across global financial markets amid fears of a hit to the global economy.

This is no longer just an Asia issue (even though the number of reported cases in mainland China has declined), the virus has spread to Italy, South Korea and Iran and there are fears this could develop into a global pandemic. Markets are starting to consider what this means for global trade and travel, while bond markets are worried about recessionary risks. With the coronavirus now in Europe, the region is particularly exposed to trade and the virus poses a threat to its fragile recovery.

Indeed, we saw the first signs of the economic fallout last week, with various Asian PMI surveys showing sharp losses."

5.23pm GMT

Today markets are pretty grim -- as the worst week since 2011 grinds on.

4.59pm GMT

European stock markets also had a grim day, with the Stoxx 600 closing 3.6% down at 389.89 points.

That, I reckon, puts it JUST into a correction -- down just over 10% from its peak last month.

4.55pm GMT

Newsflash: Britain's FTSE 100 has closed at a new one-year low, deep in correction territory.

After another torrid session, the blue-chip index has ended the day down 246 points, or 3.5%, at 6796 points.

4.33pm GMT

In a break from the gloom, Starbucks chief executive has said the situation in China is improving, with 85% of its coffee stores now open.

JUST IN: Starbucks now has 85% of its stores open across China as CEO Kevin Johnson says the situation is improving "throughout major parts" of that country. pic.twitter.com/7oJz1Oc1pf

4.30pm GMT

ECB chief Christine Lagarde has downplayed the prospect of the central bank intervening over the coronavirus - telling the FT that "we are certainly not at that point yet."

ECB President Lagarde says virus not yet at point requiring response from ECB $EURUSD

4.17pm GMT

Global banks, and their supervisors, are being urged to show vigilance about the coronavirus crisis - and share details of any economic shocks it causes.

The Basel Committee, which sets standards for the financial sector, issued this warning after discussing the coronavirus crisis today:

The Committee discussed the financial stability implications of the coronavirus outbreak (Covid-19) for the banking system and exchanged information on the business continuity measures that banks and authorities have put in place. The Committee encourages banks and supervisors to remain vigilant in light of the evolving situation and notes the importance of effective cross-border information sharing and cooperation when dealing with such shocks.

4.13pm GMT

The New York Stock exchange says it is prepared for any disruption caused by the coronavirus, should it reach America's financial heartland.

"The NYSE is carefully monitoring the spread of COVID-19 and has robust contingency plans, tested regularly, to enable continuous operation of the NYSE exchanges should any facilities be impacted."

3.40pm GMT

Newsflash: The Dow Jones industrial average is now down 900 points!

That wipes another 3% of the benchmark index, sending it deeper into correction territory. It is threatening to push the Dow below 26,000 points, for the first time since last summer.

3.36pm GMT

Stocks are continuing to tumble, alarmingly, in London, as traders watch Wall Street tumble again.

The FTSE 100 index is now down 4.3% -- a very serious decline -- losing 308 points to 6735. That pushes it deeper into correction territory.

3.33pm GMT

Consultancy Capital Economics has warned that a full-blown global Covid-19 pandemic could be as bad as during the financial crisis, when global GDP fell by 0.5%.

My colleague Richard Partington explains:

Jennifer McKeown, head of the global economics service at the consultancy, said that there was still hope the outbreak could be contained with limited negative impact for businesses and countries.

However, she warned: "One thing becoming clear is we just can't predict the spread of this and how bad it can be. But it's not difficult to get to something similar to the 2008 crisis with a pandemic situation. Of course, we hope it won't get that bad."

3.28pm GMT

There are several reasons why Wall Street is an almighty funk again today.

Partly, there is disappointment that Donald Trump didn't provide more reassurance when he discussed the Covid-19 crisis last night. The president put VP Mike Pence in charge of the response, and said he would spend "whatever's appropriate". But this was undermined by news of a new case in California.

"President Trump finally addressed the arrival of coronavirus on U.S. shores, and the government's response to controlling its potential spread"Neither inspired an already shaky North American market,"

3.10pm GMT

In another blow to investors, Europe stock markets have also just plunged into correction territory, matching Britain's FTSE 100 and the three major Wall Street indices today.

There are heavy losses of at least 3% in Frankfurt, Milan, Madrid and Paris today. That has dragged the EU-wide Stoxx 600 index down 10% from its recent peak.

3.04pm GMT

Travel stocks are under real pressure on Wall Street, with American Airlines tumbling by 9% and Delta Air down 5.5%.

Royal Caribbean has shed 10%, as investors conclude that the cruise industry is going to be very badly hit by the coronavirus.

2.57pm GMT

Twenty six of the thirty blue-chip companies on the Dow Jones industrial average are sliding today.

Chemicals maker Dow Inc is the top faller, down 3.8%, followed by Disney, then oil producers Chevron and Exxon (hit by the weak oil price).

2.49pm GMT

The scale and speed of this sell-off is quite stunning, as this screengrab from Bloomberg shows:

2.45pm GMT

Covid-19 has punctured the optimism that pushed the US stock market to a series of record highs, says Michael Hewson of CMC Markets:

He writes:

The sharp declines in equity markets in the last week have turned investor sentiment on its head in a fashion that is almost schizophrenic in nature.

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.

2.41pm GMT

What a week! And it's only Thursday morning in New York:

S&P 500 (5 Year) pic.twitter.com/kN1xUeXvIr

2.40pm GMT

Goldman Sachs's warning that US profit growth could be wiped out by the coronavirus is not helping the mood on Wall Street today.

Goldman Sachs strategists say they expect no profit growth for U.S. companies in 2020 as they update their earnings model to incorporate the likelihood that the coronavirus becomes widespread, @VildanaHajric reports. https://t.co/ViyvRXDm1M

2.39pm GMT

This is Wall Street's first correction since autumn 2018, when fears of a global slowdown rocked markets.

Bloomberg is reporting that the S&P 500 is on track for its worst week since 2008.

2.35pm GMT

NEWSFLASH: The Dow Jones industrial average has plunged into correction territory at the start of trading on Wall Street.

The benchmark index has tumbled by 520 points, or 1.9%, to 26,437, as a fresh wave of alarm over the coronavirus sweeps the New York stock exchange.

2.29pm GMT

US government bond prices are hitting fresh record highs today, as investors try to find a safe place for their money.

This has driven the yield on 10-year Treasury bills down to just 1.27% today, an all-time low. Yields move inversely to prices. Such record levels shows that the markets are worried about US growth prospects.

New all-time lows in 10-year and 30-year Treasury yields.

10-Year: 1.27%.

30-Year: 1.76%. pic.twitter.com/scUQJ2E8Nb

2.09pm GMT

Footwear-maker Crocs has also been hit.

2.06pm GMT

Newsflash: Paypal has just warned that the coronavirus will knock its revenues.

We currently estimate the negative impact from COVID-19 to be an approximate one percentage point reduction, on both a spot and foreign currency-neutral basis, to PayPal's year-over-year revenue growth for the first quarter, as compared to the revenue guidance provided on January 29, 2020.

"Stronger performance quarter-to-date across our diversified business is partially offsetting this one percentage point negative impact."

2.00pm GMT

The oil price is hitting new one-year lows too.

US crude has shed $2 per barrel to $46.72, a 4% tumble today.

1.49pm GMT

Budget airline easyJet is being hurt very badly by the selloff.

Shares in easyJet are down 10% this morning, at 10.74. That's down from 15 at the end of last week.

1.34pm GMT

Newsflash: The FTSE 100 has just tumbled to a new 13-month low.

The ongoing sell-off has pushed the index down by another 2.8%, or 202 points, to just 6839.

1.08pm GMT

The coronavirus is also having a serious impact on Venice's tourist business.

We understand the fear that is spreading but at the same time we are aware that our health care system is holding and we believe that the image of efficiency of our area will win out,'' said Daniele Minotto, the hotel association's deputy director.

Venice city councillor for economic development Simone Venturini said that the economic impact of the new virus outbreak should worry national authorities as much as the impact on public health.

12.39pm GMT

Do this week's losses mean it's time to buy the dip?

Not according to BNY Mellon's chief strategist Alicia Levine.

"If you think it is essentially a short-term problem, a hit to growth, but then it is over by the summer, then you're fine going into the market.

But if you think it is worse than that, then you have to play that out."

12.36pm GMT

Oof! Goldman Sachs has just warned that the coronavirus could wipe out all US earnings growth this year, if it "becomes widespread".

The Wall Street investment bank has also lowered its baseline forecast for earnings growth, due to the "severe decline in Chinese economic activity" this quarter.

GOLDMAN SACHS SAYS U.S. COMPANIES WILL GENERATE NO EARNINGS GROWTH IN 2020 IF CORONAVIRUS BECOMES WIDESPREAD

Or just no earnings

12.26pm GMT

Ouch! Bank of America has slashed its forecasts for the global economy, predicting the worst year since 2009, following the financial crisis.

Its economics team predict the world economy will only grow by 2.8% this year, down from 3.1% (which was already below the IMF's 3.3%).

BAML cuts 2020 global GDP growth forecast to 2.8% (from 3.1%), which would be the lowest since 2009, led by China and euro zone weakness. Risks still skewed to downside, but assuming no coronavirus pandemic, global recession - ie, sub-2% growth - not on the cards, it says. pic.twitter.com/qI38tFhlji

11.59am GMT

Standard Chartered's CEO, Bill Winters, says his company is struggling to assess the impact of coronavirus.

Speaking after the bank admitted it would miss income growth targets, Winters explained that the outbreak was a blow to its chances:

"We have had a good start to 2020, but we recognise there are some substantial headwinds that are mounting.

And most obvious is the coronavirus, which is playing itself out in ways that none of us as yet fully understand [in terms of] how exactly this will progress."

11.55am GMT

Wall Street is set to fall when trading begins in under three hours time, as New York traders catch up with the latest coronavirus news.

The Dow is set to shed another 250 points, or almost 1%.

aWALL STREET POINTS TO ANOTHER LOWER OPEN AS VIRUS FEARS MOUNTa

-DOW FUTURES ai 300 POINTS, OR 1.1%
-S&P 500 FUTURES ai 1.1%
-NASDAQ FUTURES ai 1.1%

Track the action in real-time here https://t.co/c2YtNoxoA3 $DIA $SPY $QQQ pic.twitter.com/h28NIbU0nT

US equities are poised to open lower after the CDC announced the first possible community spread of the virus in the US. The CDC cannot account for how a California resident contracted the virus. President Trump's press conference failed to calm markets as his overall optimistic tone was often balanced with warnings from the health experts.

The S&P 500 is having the worst week since the financial crisis and it is unlikely to get any better as the corporate response is delivering a wrath of profit warnings.

11.39am GMT

This is turning into the worst week for the London stock market since the heights of the eurozone debt crisis.

As things stand, the FTSE 100 has lost 505 points since the opening bell on Monday morning -- or 6.8% -- dragging it to a 13-month low.

11.31am GMT

Sir Jon Cunliffe, deputy governor of the Bank of England, has warned that central banks may not be able to help much.

Speaking in London, Cunliffe warned that monetary policy can't do much about a "pure supply shock" - ie, if coronavirus prevented goods from getting into the UK.

11.20am GMT

The pound has lost almost half a cent this morning, after the UK government threatened to walk away from trade negotiations with the EU.

Sterling dropped to $1.2867, close to a three-month low, as Boris Johnson published the UK's negotiating mandate as he pushes for a Canada-style trade deal.

11.03am GMT

A senior policymaker at the European Central Bank has revealed the ECB is "very worried" about the coronavirus, and its impact on the eurozone economy.

"All of us are very worried about what is currently happening with respect to the spread of the coronavirus.

"We know that this is really raising uncertainty to a large degree, for the global growth outlook but of course also for the outlook for the euro area."

Priced in probability of an #ECB 10 basis point rate cut by July up to around 70% from 50% at start of week UPDATE 1-Euro zone #money #markets price full ECB rate cut by December https://t.co/yRfh2fqsqN

10.41am GMT

Fears of a global slowdown have driven US crude oil prices down to a 13-month low.

US crude has dropped by almost a dollar per barrel to $47.83, the weakest since January 2019.

Energy update:
Oil - US Crude 4783 -1.86%
Oil - Brent Crude 5181 -1.88%
Natural Gas 1772 -3.59%
Heating Oil 14638 -2.24%
Gasoline 15090 -3.21%
London Gas Oil 441 -2.6%#Oil #Brent #WTI #OOTT

10.39am GMT

Chart of the morning: Closing all Macau's casinos, to curb the coronavirus's spread, has had a severe, if predictable, impact on revenues:

This looks not good pic.twitter.com/iZnLMhd5Cn

10.26am GMT

After a very rocky start, the FTSE 100 appears to have stabilised.

It's currently down 121 points, or 1.7%, at 6921. That would be a new 13-month closing low, leaving the index on the brink of an official correction.

If one looks at the history of mini-pandemics, the longstanding advice from Warren Buffet is "buy when others are fearful" which was seen by many as an almost guaranteed returns booster.

However, what we know now is that the COVID-19 virus is highly contagious but not highly lethal. This is good news for patients but bad news for the global economy, as it means that the virus can survive longer and spread easier.

10.16am GMT

UK consumers could soon see shortages due to Covid-19, warns Dr Jonathan Owens, logistics expert from the University of Salford Business School:

We are seeing no big breaks in the supply chains yet, but what is arriving at our ports now may have been ordered five to six weeks ago. So, if we do see shortages this will be in the coming weeks.

Looking to alternative sourcing is not the immediate answer, as this is more a medium to long term solution. In addition, it is not clear how long it would take to get an alternative source in place and operating efficiently within the existing supply chain.

9.59am GMT

The coronavirus will force the IMF to tear up its growth forecasts at its Spring Meeting in April, predicts Neil MacKinnon, global macro strategist at VTB Capital:

There is no respite for financial markets as the coronavirus spreads outside China. The reality is that the IMF is going to have to rewrite its projections when they are next due in April.

While the Fund is not known for ever predicting a recession, and its projections tend to be near consensus thinking, it cannot be ruled out that global GDP growth returns to 2.0% - especially given the EM and Asian economies are at the forefront of supply chain disruptions and export declines.

9.58am GMT

9.56am GMT

Shares in WPP, the world's biggest advertising company, have plunged by 16% -- on track for its worst day since 1992!

And for once, we can't blame Covid-19. Instead, the company has disappointed investors by reporting a 1.9% drop in revenues in the last quarter - and warned that sales will be stagnant this year.

"I am optimistic about the future of our industry and WPP's position within it, although there is still much more work to do,"

#WPP #Advertising #Media #Investing

-Brutal share price action on WPP today, now down at 770p
-Near 10 year low
-Unable to update accurately on #COVID2019
-Paying 60p divi - so yielding 8% right now
-Shd be interesting results meeting pic.twitter.com/NLWqmosDhs

9.38am GMT

The coronavirus has forced a major watch fair to be cancelled.

"In view of the latest developments concerning the worldwide spread of the COVID-19 coronavirus, it is [our duty]... to anticipate the potential risks that travel and important international gatherings could entail."

9.23am GMT

Troubled luxury carmaker Aston Martin has warned that the coronavirus could hurt its sales, and bog down its supply chain.

Aston Marton hit investors with more bad news today -- a loss of 130m for last year, and a forecast of "materially lower" sales in 2020.

Covid-19 has the potential to impact both the supply chain and customer demand in China and other markets. China was the company's fastest-growing market in 2019 and represented 9% of total wholesales.

9.05am GMT

Covid-19 fears have driven European stock markets down to a fresh four-month low this morning.

Virus rout continues as the outbreak spreadsto more countries. MSCI Euro down 2%. pic.twitter.com/JuMxzvfWT5

The importance of the consumer (globally) is why fear of the virus has the potential to do so much economic damage. If fear is contained at current levels, the consumer will support growth. If fear takes hold in the real world, the economic damage will be significant.

US President Trump gave a press conference to reassure Americans last night. US Google searches for "coronavirus" surged immediately afterwards.

8.53am GMT

Market analyst Connor Campbell of SpreadEx blames president Trump for today's rout:

With the coronavirus death toll approaching 3000, South Korea suffering another swell of cases, financial warnings from the likes of Microsoft, and the launch of an emergency response plan in Australia, it was hard to find even a modicum of comfort on Thursday morning.

The fact Mike Pence - whose policies helped lead to Indiana's worst outbreak of HIV, not at the height of the crisis, but in 2014/15 - has been put in charge of the US response to the coronavirus was arguably the tipping point for investors.

Mike Pence literally does not believe in science.

It is utterly irresponsible to put him in charge of US coronavirus response as the world sits on the cusp of a pandemic.

This decision could cost people their lives. Pence's past decisions already have. https://t.co/NhMPOusOWm

8.44am GMT

Another Ugly Session In Europe As This Week's #Coronavirus-Related Selloff Continues

- Stoxx 50 Down 2.6%
- Stoxx 600 Down 2.4%
- Germany's DAX Down 2.4%
- France's CAC Down 2.6%
- Italy's FTSE MIB Down 2.3%
- Spain's IBEX Down 2.3%
- UK's FTSE 100 Down 2.3% pic.twitter.com/kpVvDOjZkx

8.37am GMT

Standard Chartered, the bank focused on Asia-Pacific markets, has cut its income growth target due to coronavirus.

It warned shareholders it probably won't hit its previous target of 5-7% income growth, because of the impact of Covid-19 (plus the wider economic slowdown, and the protests in Hong Kong).

8.31am GMT

The European markets are a sickly sea of red this morning.

This fresh wave of selling has wiped another 2% off the EU-wide Stoxx 600 index.

8.22am GMT

Nearly every company on the FTSE 100 is down today, with travel companies among the top fallers.

In London, budget airline easyJet has slumped by 8% this morning to its lowest level since October. Holiday firm TUI has shed 4.3%.

8.14am GMT

I reckon the FTSE 100 has plunged into a full-blown correction.

Today's slump means the index is more than 10% below its recent peak, of 7674 points set on January 17th.

8.11am GMT

Newsflash: Britain's FTSE 100 has fallen more than 2% at the start of trading.

The blue-chip index has shed another 153 points to 6,887. That means it has plunged by 7% this week, as coronavirus fears have swept the City.

7.57am GMT

New Zealand is also bracing for an economic hit from Covid-19, having already seen exports to China cancelled:

7.54am GMT

Consumer goods group Reckitt Benckiser says this morning that demand for its Dettol antibacterial soaps, sprays and wipes and its Lysol cleaning and disinfecting products has risen due to the coronavirus outbreak.

"It is too early to fully assess the impact of the COVID-19 outbreak on the operational and financial performance of the Group. We are committed to China, to the health of our consumers in China and to the health and safety of our employees in China.

"We are seeing some increased demand for Dettol and Lysol products and are working to support the relevant healthcare authorities and agencies, including through donations, information and education. We do see increased activity online for our consumers in China. Conversely we are seeing some disruption to offline retailers, distribution channels and the supply chain connected to China."

7.50am GMT

Investors are "vigilant and broadly fearful" of the growing coronavirus outbreak, despite Donald Trump's statement on the crisis last night, says Kyle Rodda of IG:

The day turned pear-shaped after US President Donald Trump's press conference addressing the White House's response. Trump didn't say anything too controversial, and spent most of his breath reassuring his constituents that the crisis, within American borders, is under control, despite the significant rise in cases reported in the US yesterday.

Despite this, and for whatever reason, traders reacted to the press-conference poorly, clearly assuming that the situation in the US will likely deteriorate from here.

The main takeaway was that the virus will "probably spread in the US"....

We think the next 'breaking point' will be when there is a big cluster of cases in the United States. Former Fed-Chair Yellen acknowledged yesterday that "it's conceivable that coronavirus pushes US into a recession".

7.38am GMT

This is turning into a grim week for the markets, even before Europe opens today.....

So Asia Pac stocks are now headed for the worst weekly loss in two years and we're not even through with Thursday pic.twitter.com/WA53gEHqh4

Latest Virus rout has wiped out $5tn in global mkt cap, equal to the GDP of Japan. pic.twitter.com/EutkmGnaHx

7.30am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

FTSE 100 looks set to open down about 100 pts in the region of 6900. Trump putting Pence in charge of US response to Covid-19 mysteriously fails to reassure markets.

Prepare for another portfolio battering, these are the futures... pic.twitter.com/jnmUaod9iQ

The risk to the American people remains very low. We are ready to adapt and we are ready to do whatever we have to as the disease spreads, if it spreads.

There's no reason to panic . . . this will end."

President Donald Trump said Americans face little risk from the coronavirus outbreak, seeking to ease public concern after lawmakers raised concern that the government is unprepared. He speaks at a news conference at the White House. https://t.co/zMOK5mVZXK pic.twitter.com/7dNmfN3QyV

US futures signaling the S&P 500 may open right on top of the level below which US stocks enter a technical correction. Here we go. pic.twitter.com/lEJ8i7d7GR

News spurred worries that the coronavirus is becoming a global threat and that containment measures elsewhere could further slowdown the global growth. Some European companies paused their business trips for the coming weeks and earnings forecasts are being pulled lower....

The slide we are seeing right now is not the correction of the recent stock rally, but the market's understanding that the coronavirus outbreak would translate into significantly lower earnings and an anaemic global growth. If we add the fact that the crisis has only started outside China into the mix, there is a meaningful shift in stock valuations.

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