Wall Street and FTSE 100 plunge on worst day since 1987 – as it happened
Britain's FTSE 100 index falls by 10.87% as European Central Bank and Federal Reserve try to stem declines
- Latest: US stocks plunge into bear market
- US Federal Reserve steps in with $1.5tn operations
- Worst losses in London in a generation
- Summary: 160bn knocked off blue-chip index today
- European markets had biggest falls ever
- Introduction: Trump's EU travel ban shocks markets
9.58pm GMT
Finally, here's a reminder of today's shock moves, from Jasper and our colleague Richard Partington:
Panic over the coronavirus on global financial markets amid the biggest market crash in a generation has forced the US central bank to inject trillions of dollars into bond markets in a dramatic attempt to prevent a repeat of the 2008 credit crunch.
As stock prices plunged around the world on Thursday, with both the London and New York markets suffering their worst day since the Black Monday crash of October 1987, the New York Federal Reserve said it would pump $1.5tn (1.2tn) into the American financial system to stop markets from freezing up.
This is the fourth-worst day in the 124-year history of the Dow Jones Industrial Average
The Euro STOXX 600 index, which tracks all stock markets across Europe including the FTSE, fell by 11.48% - the worst day since it launched in 1998. The panic selling prompted by the coronavirus has wiped 2.7tn off the value of STOXX 600 shares since its all-time peak on 19 February.
"Today has been utterly brutal," said Neil Wilson, chief market analyst of the online trading platform Markets.com. "Markets are at breaking point, there is a real systemic risk now with financial markets in complete turmoil over the coronavirus."
US Fed injects $1.5tn to markets as Dow and FTSE suffer worst day since 1987 https://t.co/4eycdRuq75
9.50pm GMT
Bitcoin is continuing to slump -- at a pace that dwarfs the stock market tumbles today:
Wow! #bitcoin is down 30%... pic.twitter.com/lqbcdNkGaz
Drawdowns from Recent Highs:
Oil: -53%
Bitcoin: -46%
Delta Airlines: -46%
Tesla: -42%
Goldman: -40%
JP Morgan: -38%
Transports: -36%
Russell 2000: -35%
FANGs: -28%
S&P 500: -27%
Nasdaq 100: -25%
Amazon: -23%
Consumer Staples: -19%
Gold: -7%
Cash: 0%
via: @BearTrapsReport
9.42pm GMT
Tho' markets in the US and Europe are closed, the futures markets are still open.
And they suggest markets are going to fall again tomorrow, with the German DAX currently 3% lower on IG's overnight futures trading.
After an 11% decline today German 30 #dax continues its falls, down over 3% in @IGcom 24 hour markets . Total fall@since Feb 18 now 35% #CoronavirusPandemic #marketcrash pic.twitter.com/OlQmwNwBE0
8.31pm GMT
Two weeks ago, the Dow suffered its biggest points fall ever -- 1,190 points, or 4.4%.
That felt like a lot at the time. Today's slump is more than TWICE as bad, in both points and percentage terms.
What a day on Wall Street. The Dow closed down 2,352 points - its worst percentage drop since 1987, and its worst point drop ever. https://t.co/XsGvShd6HC pic.twitter.com/WCQEPPNTBL
8.27pm GMT
8.23pm GMT
I quite forgot to give you the Dow's closing price! Sorry. Probably the shock.
Here it is, and the tech-focused Nasdaq too.
Today was the worst day for the Dow since 1987 and one of the worst ever. pic.twitter.com/MphaJqwXsm
8.18pm GMT
The Dow Jones industrial average has also suffered its worst day since the 1987 crash.
Despite the Federal Reserve's $1.5trn intervention, stocks have plunged very, very sharply again.
Wow, Dow closes down 9.99%, biggest one-day drop since Black Monday back in 1987. Bigger drop than anything during the financial crisis.
Dow Jones plunges 2352.60 points or 10% amid coronavirus fears for its worst day since the 1987 market crash. https://t.co/aRI4o7S4A3 pic.twitter.com/NEqDPGHN98
BREAKING: "This is a historic closing."@RebeccaJarvis reports after the Dow Jones closes down 10%, a severe decline as markets spiral from coronavirus fears. https://t.co/vnRTdaA7HE pic.twitter.com/HnuaKDHAZf
8.10pm GMT
NEWSFLASH: America's S&P 500 index has plunged into a bear market tonight, after another day of shocking losses.
The S&P 500 has just closed, down 260 points or 9.51% at 2,480.
7.54pm GMT
Baseball's only sport. Just like the markets are only money.
But the postponement of America's Major League Baseball season tonight brings home to Wall Street just how much of an impact Covid-19 is going to have,
Statement from Major League Baseball: pic.twitter.com/0bWS5VTRPu
7.50pm GMT
With just 10 minutes to go, Wall Street is still showing heavy losses again.
The S&P 500 is down 8%, which means it will be in a bear market when the closing bell rings, while the Dow Jones industrial average is down 2,120 points or 9%.
7.48pm GMT
The International Air Transport Association, which represents most of the world's airlines, has warned that President Donald Trump's shock ban on visitors from most of Europe could drive some carriers out of business:
IATA had already predicted that the crisis could wipe out over $100bn of revenue - but even that extreme scenario didn't include such severe measures.
Trump's European travel restrictions could drive some airlines out of business, trade group warns https://t.co/6WimtVcEPU
7.45pm GMT
Socii(C)ti(C) Gi(C)ni(C)rale strategist Albert Edwards, who has long been predicting an economic downturn, has warned today that stock markets are still very vulnerable - and shouldn't be regarded as at bargain levels.
"The toxic fallout from the coronavirus pandemic's bursting of the Fed's 'everything bubble' has collided with the grotesquely over-leveraged and vulnerable US corporate sector.
This puts equity markets in an even more vulnerable position."
7.26pm GMT
Here's a number for you: Europe's blue-chip stocks have lost a3tn (2.7tn) in market value since hitting their highest level on record last month.
The last three weeks have wiped out almost seven years of gains for Europe's largest companies (including many of those on the FTSE 100, Germany's Dax and Italy's FTSE MIB, amongst others). The index has been running since 1998.
On February 19 the Stoxx Europe 600 reached its all time high with an index level of 433.90.
The corresponding free-float market cap of all constituents on that day summed up to a9.372 trillion.
7.04pm GMT
A worrying report from Reuters on the Treasury market, suggesting there are serious issues even after the Federal Reserve stepped in.
The promise of $1.5tn of liquidity is a sign that the Fed is taking the problems about as seriously as they come. The Treasury market (for US government bonds) is the benchmark for prices all over the economy, meaning any disruptions could be very serious across the financial system.
Liquidity in the $17tn Treasuries market has deteriorated to its worse levels since the financial crisis, traders said, and some market participants are concerned that conditions could lead to investors being forced to sell assets across markets.
Fears about the spreading coronavirus and how badly it will impact the global economy have sent investors running from stocks and into lower-risk assets, including Treasuries, which hit record low yields on Monday.
6.57pm GMT
A recap: here's the damage from across Europe on a day that will be remembered long into the future (for all the wrong reasons).
Markets are at breaking point, there is a real systemic risk now with financial markets in complete turmoil over the coronavirus, Treasury markets showing immense signs of stress and a scramble for dollars whacking FX markets all over the place.
Today has been utterly brutal. European shares had their worst day ever and it is not unduly pessimistic to suggest that panic has taken hold.
6.43pm GMT
US stocks are almost back where they were before the NY Fed intervened.
The S&P 500 is down by 7.9%. The Dow Jones industrial average has lost 8.3%, the Nasdaq has lost 7.7%.
6.37pm GMT
Oil prices were briefly boosted by the Fed's intervention in the markets, but the good cheer did not last.
A barrel of Brent crude, the North Sea benchmark, will set you back $32.71, according to futures prices. That represents a fall of 8.6% today.
6.18pm GMT
It's worth taking a look back at some of the moves among UK shares on the FTSE 100 and the FTSE 250 today.
Here's the picture of the biggest fallers on the FTSE 100 (there aren't any gainers):
5.58pm GMT
In fact, the Fed's actions in total represent more than $1.5tn in liquidity: $500bn for the three-month repo market today, followed tomorrow by $500bn in that market and $500bn in the one-month repo market.
Seema Shah, chief strategist, Principal Global Investors, said:
The Fed finally stepped up to the plate today, recognising the desperate need for aid from several parts of capital markets. By expanding its balance sheet significantly, injecting over $1.5tn into short-term funding markets, the Fed is acting aggressively to prevent a liquidity crisis from taking hold of the global financial system - a fear that had been driving equity markets lower and credit spreads wider.
The relief has been immediate, with stocks paring their losses as investors stop their indiscriminate selling. It remains to be seen how long risk assets will continue to be supported against a backdrop of global quarantines, travel bans, and spreading infection. But the Fed has certainly fulfilled its role of lender of last resort for markets today, injecting not just funds, but reassurance that someone is watching over them.
5.54pm GMT
The actions of the NY Fed (which is responsible for market operations on behalf of its parent, the US Federal Reserve) have sparked talk of a return of quantitative easing.
It's "QE4", said Ian Shepherdson, chief economist at Pantheon Macroeconomics. He pointed to a modification of the Fed's $60bn purchases of bonds, which it carries out to manage the stock of assets built up under quantitative easing. The Fed will widen the purchases to a broader range of debt.
This is a full-blown crisis response operation, intended to make it abundantly clear that the Fed will not allow liquidity to dry up. [...]
It's inconceivable to us that the Fed will not extend these operations; they can't do anything which reduces policy accommodation, even at the margin.
In other words, we expect the Fed to purchase $60bn of securities across the spectrum for the foreseeable future: QE4 is here. This is a world away from the bill purchases, which effectively just allowed banks to swap bills for reserves at the Fed. This action will offset the inevitable downward pressure on money supply growth as economic activity contracts. It should weaken the dollar and raise asset prices, other things equal. They won't be, but these actions should limit the damage. We expect the FOMC to announce indefinite purchases at next week's meeting, alongside a rate cut of at least 50bp. Now it's up to Congress to fire the fiscal bazooka, the bigger and quicker the better.
5.44pm GMT
Prime minister Boris Johnson has described the coronavirus outbreak as the "worst public health crisis for a generation".
The true number of cases is higher, "perhaps much higher", than the latest figures suggest, he said.
More families, many more families, are going to lose loved ones before their time.
5.36pm GMT
The $500bn operation came too late for European markets, but it appears to have given limited succour to US investors.
The US repo markets are a crucial part of the financial system, allowing banks and other financial institutions to borrow money against US government Treasury bonds. The NY Fed's statement said that there had been problems in transactions in this market.
Fed adopts fireman pose and pours s-t liquidity at a burning market. The yen is thinking about it....
5.17pm GMT
Hello, Jasper Jolly here, taking over from Graeme Wearden. And the news isn't stopping:
The Federal Reserve Bank of New York has stepped in with three $500bn injections of liquidity into markets - helping US stocks to recover some losses.
Today, March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020. Tomorrow, the Desk will further offer $500 billion in a three-month repo operation and $500 billion in a one-month repo operation for same day settlement. Three-month and one-month repo operations for $500 billion will be offered on a weekly basis for the remainder of the monthly schedule. The Desk will continue to offer at least $175 billion in daily overnight repo operations and at least $45 billion in two-week term repo operations twice per week over this period.
5.03pm GMT
Today's slump has wiped another 160bn off the value of Britain's biggest blue-chip companies, I calculate.
5.01pm GMT
The FTSE 100 index of leading shares listed in London has now plunged by almost 30% in the last three weeks - a shockingly sharp move, with a severe impact on savers, pensions funds and ISA holders.
4.49pm GMT
NEWSFLASH: Britain's FTSE 100 has suffered its biggest one-day loss since October 1987, and its second worst day ever.
The escalating coronavirus crisis has triggered an absolute rout in the City again, and around Europe, as Donald Trump's EU flight ban sparks alarm -- and fuels fears of a global recession.
The #FTSE100 falls 11%. That's the steepest one-day drop since the 1987 crash. #marketcrash
It has been yet another horrendous day in the markets as fears surrounding the health crisis continue to rise. Trump's travel ban set the scene, and even though the European Central Bank (ECB) announced measures to assist the eurozone, dealers remained in selling mode. The ECB kept the refinancing rate on hold at 0.0%, but the deposit rate was also left unchanged at -0.5%, while traders we expecting it to be cut to -0.6%. The central bank will assist SMEs in the currency area through a new targeted lending operation, and the terms will be more favourable. In addition to that, $120 billion of quantitative easing was revealed too.
Christine Lagarde, the ECB chief, called for a co-ordinated and ambitious response to the crisis, and traders will be looking ahead to Monday's euro group meeting to see if there is a show of strengthen and unity. The ECB can only do so much on its own. Robust fiscal action is needed too. In relation to the government bond market, Lagarde, said they we not there to 'close spreads', but the stimulus addicted markets didn't like that one bit, hence why European equites are massively lower.
4.44pm GMT
Newsflash: Italy's stock market has closed down 17%, Reuters is reporting - its worst day ever.
The EU-wide Stoxx 600 also had a terrible day, down 11% at the close of trading.
4.26pm GMT
Donald Trump continues to insist that the coronavirus will "go away", speaking at the White House earlier.
"It goes away," President Trump says about the fast-spreading coronavirus. "We want it to go away with very, very few deaths." He adds that the U.S. has offered Iran assistance to combat the virus. https://t.co/86CeGMTfnK pic.twitter.com/GL21D8BZzV
"Let's put it this way, I'm not concerned," says Pres Trump about reports Pres Bolsonaro of Brazil being tested for Coronavirus. POTUS had dinner with Bolsonaro at his Mar-a-Lago resort Saturday night. He says they sat next to each other, had a good coversation. pic.twitter.com/ctvQOcPXKi
4.23pm GMT
Donald Trump's decision to ban EU flights from America was "the most expensive speech in history", says Luca Paolini, chief strategist at Pictet Asset Management.
"Investors are voting with their feet, and I can't blame them. Markets wanted reassuring, and this was not reassuring."
"This was the most expensive speech in history"
US stocks plunge 8% as European markets face record fall after Trump speech
https://t.co/khmG3p5jPX
A look back on S&P Futures during Trump's coronavirus address last night: pic.twitter.com/YJR2q7LNaW
4.14pm GMT
Global stock markets have plunged into a bear market today, Reuters reports.
"It's not just the fear of the economy going weak, but basically being on the brink of shutting down.
"It's mass selling across the board (and) we are pricing in a potential to go into another financial crisis."
4.04pm GMT
Christine Lagarde is trying to repair the damage from her comment about "not being here to close [bond] spreads".
She's told CNBC that the European Central Bank's new package to protect the economy from the coronavirus will help close "dislocations" in the bond market:
Lagarde in CNBC interview: I am fully committed to avoid any fragmentation in a difficult moment for the euro area. High spreads due to the coronavirus impair the transmission of monetary policy. (1/3)
Lagarde: And as I said in the press conference, we will use the flexibility embedded in the asset purchase programme, including within the public sector purchase programme. (2/3)
Lagarde: The package approved today can be used flexibly to avoid dislocations in bond markets, and we are ready to use the necessary determination and strength. (3/3)
3.58pm GMT
ECB chief Christine Lagarde appears to have caused serious panic in the market today.
During her press conference, she was asked about the jump in bond spreads (the gap between yields on risky and less risky assets) -- and appeared to reply that it wasn't her problem.
Lagarde: We are not here to close spreads, there are other tools and other actors to deal with these issues
Sometimes you're just dealt a bad hand. The ECB came into this meeting with volatility and fear dialled to a max; that isn't easy. That being said, today's performance will go down as a catastrophic failure by part of the ECB. It is one of the world's largest central banks, and today markets were crying out for a backstop; they got anything but. Ms. Lagarde spent significant energy on the press conference calling on fiscal policy coordination as the key tool to deal with the fallout from Covid-19. This is self-evident, but it is also extremely tone-deaf at the current juncture. We are not in the business of expressing what we think policymakers should do, but we'll make an exception on this occasion. Here is the message, the ECB should have sent today.
"We don't know what fiscal policy will do. We hope they act. In the meantime, we will backstop the financial system and real economy using our position as a central bank with unlimited firepower. "
3.48pm GMT
3.44pm GMT
My god, Britain's FTSE 100 is now down 10% - or 590 points, at 5287, as the sell-off accelerates in late trading.
3.36pm GMT
We're into the last hour of possibly the worst session on the London stock market in over 30 years.
The FTSE 100 is still showing huge losses, down 9.3% or 547 points at 5330. That would be the third-worse session in the index's history (going back to to 1984), exceeded only by the crash of 1987 [which took place over 2 days].
3.32pm GMT
Back on Wall Street, traders are preparing for the official end of the Bull Market.
The S&P 500 index is down over 7.2%, or 196 points, at 2,544 -- or over 20% off its all-time high earlier this year.
The S&P may be off its low of the day - but it is still down 7.5% https://t.co/PtsHoOnTRY pic.twitter.com/GX1jUiwtWS
3.02pm GMT
The chairman of Tesco has told UK shoppers not to panic about food shortages.
Chairman John Allan told BBC radio that the supermarket's supply chains were coping, despite signs that shoppers are hoarding toilet roll, pasta, tinned goods and cleaning products.
"There's plenty of product in the supply chain, there's plenty of food at Tesco and other supermarkets, and I don't think anybody needs to panic buy.
"We, and I'm sure our competitors, are re-filling our supply chains as rapidly as ever we can."
2.56pm GMT
The ECB's new stimulus measures are broadly positive for banks, so it's concerning that financial stocks are plunging.
So what's going on?
Investors are realising that central banks have pretty much extended themselves, using all the tools at their disposal. The problem is that their efforts aren't being matched by fiscal stimulus by governments across the EU. (A point that ECB's Christine Lagarde has made ad nauseam, not just today.)
If governments fail to take action - primarily by spending money to support small businesses and individuals as they weather the effects of the coronavirus outbreak - it could result in a wave of defaults, which could wipe out investments and pile banks with bad debts.
Benjie Creelan-Sandford, an equity analyst at Jeffries said:
We read the ECB measures on balance as positive for banks - it provides strong liquidity backstop while reduction in capital requirements offers flexibility.
However, without follow-through from governments on fiscal measures to assist the most challenged parts of the economy, the market is likely to remain fearful about spillover impacts and eventual real losses for banks.
2.50pm GMT
ECB president Christine Lagarde has called for European leaders to help the eurozone's ailing economy, as the bond markets flash alarmingly.
"What happens after a severe and temporary fall, provided the right measures have been taken by all the players, is that the economy will then bounce back.
"The exact timing of that is uncertain. There will be a rebound but the timing is uncertain."
I really would like all of us to join forces, I very much hope that the fiscal authorities appreciate that we will only deal with this shock if we come together."
Thank god that presser is over.
Got to be one of the worst central bank press conferences in recent memory.#ECB
2.32pm GMT
European bank shares are being routed, with ING down 16%, ABN Amro down 15%, Deutsche Bank down 14% and Credit Agricole down 12.7%.
Financial stocks in London are also plunging; life insurance and financial services group Prudential are down 18%, while Legal & General are down 14%.
2.21pm GMT
The market crash is sending investors racing to buy dollars.
This has sent sterling reeling, down 2 cents today to $1.26 - the lowest since October.
2.19pm GMT
Trading has been briefly halted in Brazil too, where stocks plunged another 10%.
Brazil stock market trading halted after 10% fall triggers circuit breaker. Bovespa now down 35% this year (over 45% in dollar terms). pic.twitter.com/fa2RdbyXWN
2.13pm GMT
Markets are cratering around the world.
FTSE 100 down 9% - lowest now since 2012.
Nearly eight years of gains wiped out in less than three weeks.
Dow also down 9% EU markets down c.10% pic.twitter.com/OelnO5eJEB
If the FTSE 100 closed right now this would be a worse one-day fall than any single day during the financial crisis. Worse than any single day since Black Monday in 1987
2.12pm GMT
It's another horrific day in the markets, turning into the bleakest sell-off we've seen since this crisis began.
The FTSE 100 index is on track for its worst one-day fall since 1987. Worse than Monday's plunge. Worse than any single day in 2008 after Lehman Brothers failed.
Dow Jones circuit breakers fire, halting stock market trading after 7% fall at opening... hadn't happened since 1992, now twice in 1 week, as markets fear economic/solvency impact of pandemic and erratic uncoordinated response from some world leaders.
FTSE down 9.5% now as Dax and Italian index
CAC 40 down 10%
This is turning into a rout.
2.04pm GMT
Trading has resumed on Wall Street, and the Dow has promptly plunged by 2,000 points!
That takes the index down to a new one-year low, and shows just how serious this market crash is turning into.
DOW PLUNGES 2,000 POINTS IN HISTORIC SELLOFF$DIA pic.twitter.com/eukVChjSvF
1.51pm GMT
News that trading has been suspended on Wall Street has triggered a monster selloff in Europe.
The FTSE 100 has plunged 9%, shedding 546 points to just 5,330.37 -- levels not seen since 2012.
DAX in Frankfurt down 10%. IBEX in madrid down 11%
STOXX Europe 600 extends declines, now down 10%, the biggest ever decline #EUstocks50 on IG platform#MarketSlump pic.twitter.com/Ynef9CQ1Gx
1.42pm GMT
NEWSFLASH: Trading has been briefly suspended on the US stock exchange, for the second time this week.
Automatic circuit breakers kicked in shortly after the open, at 9.30am New York (1.30pm UK), when the S&P 500 index plunged 7%.
US underlying markets suspended for 15 minutes to reset circuit breaker, after cash market opened down 7%
1.39pm GMT
The coronavirus crisis has forced the Princess Cruises line to suspend global operations for the next two months.
Related: Grand Princess cruise couple sues over 'lackadaisical' coronavirus response
1.29pm GMT
The top faller on the FTSE 250 is Finablr, which runs Travelex. Shares are down 66% (!) after it warned it might struggle to access cash needed to manage its business as well as negotiate longer term financing.
Restaurant Group, which runs Frankie & Benny's, Garfunkel's and Wagamama, are down 23%. Clearly it would suffer from mass self-isolation in the coming weeks...
1.24pm GMT
Shares in UK train and bus operators are slumping today, after Go-Ahead warned the coronavirus would hurt profits.
National Express are down 18%, First Group has lost 17%, Stagecoach are off 12%, and Trainline are down 11%. Their revenues would all suffer if fewer people travel into work (as seems imminent).
1.17pm GMT
Back in the UK, Travel insurers Aviva, InsureandGo, and the Post Office have followed LV= and have withdrawn cover for future coronavirus claims, or stopped selling policies.
On Wednesday night LV= shocked the travel industry when it announced that it would stop selling all travel insurance policies with immediate effect, due to the coronavirus outbreak.
1.16pm GMT
Industry regulator the European Banking Authority is delaying its EU-wide stress test by a year so that banks can focus on the challenges posed by the coronavirus outbreak.
Instead, the EBA said it would launch a transparency exercise to determine how much risk they hold on their balance sheets.
"Addressing any operational challenges banks may face should be the priority. The EBA has decided to postpone the EU-wide stress test exercise to 2021. This will allow banks to focus on and ensure continuity of their core operations, including support for their customers,"
1.12pm GMT
Approaching condition-free dual rates from the ECB. Already lent to banks at below where it took deposits (ie subisidy) for limited conditions, but now only have to maintain credit. Big incentive for banks to extend loans.
1.11pm GMT
By resisting a rate cut today, the ECB has left its benchmark rate at 0%.
It will continue to impose a negative rate of 0.5% on commercial bank deposits left at the ECB (to encourage lending).
Going through the @ecb policy announcement.
Appears that the @ecb has finally understood that lower rates, especially when in negative territory, are not just ineffective but can be counter-productive.
Enhanced wholesale liquidity facilities are a good move. Need to assess design
Dual interest rates FTW. Well done, @ecb.
So via the TLTRO the ECB lowers its interest-rate for the banks to -0.75% but for everyone else the Deposit Rate is -0.5%
1.04pm GMT
European stock markets are plunging deeper into the red following the ECB's announcement.
The FTSE 100 is now down 420 points, or 7.1%, at 5456 -- which would be its lowest close since 2012.
Dax extends losses after ECB decision. Biggest disappointment is the lack of interest rate cut. Dropped briefly to 9545. pic.twitter.com/7cn9Nhzdni
#BREAKING ECB responds to #coronavirus crisis
* leaves key interest rates unchanged
* offers cheap loans to SMEs
* plans to buy additional a120 bn in bonds this year pic.twitter.com/Gg3jAZu4gm
12.58pm GMT
ECB summery:
LTRO (3m) at minus 0.5%
TLTRO (1year) at as low as minus 0.75%
Extra a120 bn of asset purchases this year
Banks to be allowed run lower capital.https://t.co/Be9RRul9ml
12.58pm GMT
The European Central Bank is also relaxing the capital rules on banks, to help them through the crisis.
It says:
The European Central Bank (ECB) today announced a number of measures to ensure that its directly supervised banks can continue to fulfil their role in funding the real economy as the economic effects of the coronavirus (COVID-19) become apparent.
"The coronavirus is proving to be a significant shock to our economies. Banks need to be in a position to continue financing households and corporates experiencing temporary difficulties. The supervisory measures agreed today aim to support banks in serving the economy and addressing operational challenges, including the pressure on their staff," said Andrea Enria, Chair of the ECB Supervisory Board.
Press release: ECB Banking Supervision provides temporary capital and operational relief in reaction to coronavirus https://t.co/HdwWoyb8um
12.52pm GMT
NEWSFLASH: The European Central Bank has announced new stimulus measure to support the eurozone economy through the coronavirus shock.
It is launching new longer-term refinancing operations (LTROs), which will offer liquidity to the financial system, saying:
Although the Governing Council does not see material signs of strains in money markets or liquidity shortages in the banking system, these operations will provide an effective backstop in case of need.
These operations will support bank lending to those affected most by the spread of the coronavirus, in particular small and medium-sized enterprises.
ECB announces TLTRO with interest rates as low as MINUS 0.75%
A temporary envelope of additional net asset purchases of a120 billion will be added until the end of the year, ensuring a strong contribution from the private sector purchase programmes. In combination with the existing asset purchase programme (APP), this will support favourable financing conditions for the real economy in times of heightened uncertainty.
12.08pm GMT
It's just passed noon, and there's no recovery in the City.
The FTSE 100 is still being hammered, down 5.7% or 341 points at 5534. Every share is still down.
12.02pm GMT
Thameslink and Southeastern rail operator Go-Ahead is in discussions with the Government on relaxing the rules around timetable changes to cope with the conoravirus pandemic, reports the Press Association
Chief executive David Brown explained he is hoping to be allowed to make changes faster than the current 70-day notice period.
"We want to be able to respond far quicker. Let's say everyone wants to travel off-peak, we want to be able to make more services available."
12.00pm GMT
Food delivery group Deliveroo has introduced a "no contact drop-off service" as concern grows about the coronavirus pandemic in the UK.
The app-based food delivery company told customers they will be able to request in the app that their food is left on the doorstep, thus "removing the need for direct contact for both parties."
11.48am GMT
The coronavirus crisis has forced housebuilder Berkeley Group to suspend a 455m payout to shareholders, a mixture of dividends and share buybacks, until there is greater clarity on the economic impact of the pandemic.
It added that there had been "no noticeable impact" on its business so far.
11.47am GMT
The US travel ban could pile further pressure on oil markets by cutting demand for jet fuel, according to Rystad Energy.
Oil prices fell to just above $33 a barrel this morning after President Trump's ban on European flights for the next 30 days.
And the super-contango is here!
The Brent crude 1-year time spread (M1-M13) has now widened to more than $10 a barrel. The market is moving to carry a humongous amount of oil barrels into inventories | #OOTT #OilPriceWar #Contango @TheTerminal pic.twitter.com/ith45yJWHo
11.42am GMT
Ireland has just announced that schools, universities and childcare facilities will close until 29 March, due to Covid-19.
Acting PM Leo Varadkar also said people should limit mass gatherings, work from home where possible, and stagger their break times.
#Breaking Irish premier Leo Varadkar has announced that all schools, colleges and childcare facilities in Ireland will close until March 29 as a result of the Covid-19 outbreak pic.twitter.com/9SnBMyAi2f
11.27am GMT
Lloyd's of London's temporary, one-day closure will affect thousands of brokers and underwriters.
Just under 50,000 people hold a pass to the building, but don't all turn up every day, and Friday is a quieter day, John Neal explains.
11.24am GMT
Newsflash: Lloyd's of London will close its underwriting room for 24 hours from midnight, until midnight on Friday, says its chief executive John Neal.
10.56am GMT
Bitcoin is tumbling too.
The crypto-currency has slumped from $7,859 last night to around $6,600 as I type, a drop of 15%. Trading is extremely volatile.
Cash is king in a crisis. Like real hard cash.#bitcoin pic.twitter.com/zR9jc3oF0Y
10.48am GMT
Stocks, today.
China: -1.5%
Saudi: -1.5%
Hong Kong: -3.6%
South Korea: -3.8%
Turkey: -4.3%
Indonesia: -5%
Portugal: -5%
Italy: -5%
Switzerland: -5.1%
Germany: -5.5%
France: -5.5%
UK: -5.5%
Spain: -5.7%
Netherlands: -5.7%
Austria: -5.8%
Russia: -6.7%
Australia: -7.2%
India: -8.1%
10.48am GMT
10.34am GMT
Richard Hunter, Head of Markets at interactive investor, warns that Wall Street is on track for another plunge in three hours time:
The latest pronouncement from the US has exacerbated the sour mood, with a travel ban from Europe dealing another blow to the beleaguered tourism and travel sector. At the same time, the lack of any specific positive measures in the update has given markets an additional and unwelcome hit to factor in to share prices.
Notable by its absence at the moment is any good news. The coronavirus has yet to peak, the oil price is under renewed pressure (although this may prove positive for consumers in the medium term) and only a fraction of the eventual economic cost has been confirmed, even though a growing number of companies are valiantly trying to put a figure on the hit to their earnings. Meanwhile, there is nowhere to hide, with even the traditional haven of gold in negative territory today.
Even interactive investor customers are buying with less conviction. Of those choosing to trade today, 75% are buyers, which compares to the initial falls on Monday this week where the figure was 90%.
10.29am GMT
Warnings about corporate debt levels are coming home to roost en masse thanks to the coronavirus, flags up economics professor Nouriel Roubini:
The Coming Debt/Financial Crisis: in 2007-09 it was households/mortgages/levered banks in US. This time is corporate debt (CLOs, leveraged loans, 1 trillion of fallen angels in HG & HY, & commercial RE) & shadow banks. & even capitalized banks directly exposed to shadow banks!
10.22am GMT
After over two hours of frenzied trading, European markets are still a mess - trading at their lowest levels since 2016.
In London, the FTSE 100 is still down over 5%, having briefly hit its lowest level since 2012 this morning. That wipes another 80-odd billion off the index, pushing its coronavirus crisis losses over 450bn.
Related: Record 11.6m UK gambling fine meted out to Betway
Financial markets remain in absolute chaos as virus concerns run rampant. US stocks lost 5% on Wednesday and futures point to another 5% plunge when Wall Street opens today, after President Trump announced overnight that he will ban all travel from Europe for the next month to slow the spread of the virus.
European stocks didn't escape the carnage, with most indices down ~6% today not just on concerns of business disruptions due to the travel ban, but also due to an increasingly worrisome flow of European news. Italy closed down most of its stores yesterday, while one country after another is closing down schools and banning public events.
9.58am GMT
British train and bus operator Go-Ahead Group was warned its profits could be hurt by coronavirus (although there's no real damage yet).
Reuters has the details:
"At this moment in time it is not affecting us, not in any dramatic way because people haven't changed their travel patterns yet," CEO David Brown said in an interview on Thursday.
But over the coming months, that could change.
9.52am GMT
The market slump shows some investors are pricing in a major downturn, a lockdown of US cities, and a "severe credit crunch", say analysts at Nomura:
The market has been jolted to the point of breaking, and textbook common sense seems to no longer apply. To all appearances, investors are bracing themselves for a worst-case scenario in which the coronavirus spreads in explosive fashion and leads to a global recession, the lockdown of major urban centres across the US, and a severe credit crunch. It is difficult to know what investors are actually thinking, but given the extreme uncertainty over what will happen, investors' own insecurities could cause a worst-case black swan scenario to actually unfold in self-fulfilling fashion.
Although we are simply hypothesizing here based on our estimates, we are of the impression that to the extent that relatively inexperienced market players have taken this episode as a shock, they are also likely to be quicker to conclude that the flow of bad news has been depleted. Conversely, investors who have already lived through such episodes as Black Monday and the collapse of Lehman Brothers may be less shocked by the present episode, but by the same token, they may be more inclined towards caution over what comes next. There is no data available on the age distribution of market participants. However, we suspect that the market's departure from what has passed for common sense may be encouraging more experienced investors to brace for more risk-off movements, thereby exacerbating the market plunge.
9.41am GMT
Stock markets are capitulating in the face of the coronavirus's threat to the global economy (and Trump's response), says Russ Mould, investment director at AJ Bell.
"Today's early morning session saw a 6.3% decline in the FTSE 100 to 5,502 which put the index back to levels not seen since July 2012.
Donald Trump's restrictions on travel from many parts of Europe to the US have spooked the market, particularly because his initial comments implied they would also block cargo, which he has since retracted.
"For anyone in London, it does feel like some of the commuter trains are less busy, so too gyms and swimming pools. Daily activity is being affected by more people working or staying at home. One can only assume this trend is emerging across the rest of the country."
9.33am GMT
There's a lot of grim charts out there today, but this one might be the worst. It shows how the Stoxx 50 index of Europe's largest companies is half its level before the dot-com crash:
Fun fact: European equities now trade 47% below market peak in 2000, having never recovered from 2002, 2008 drawdowns. pic.twitter.com/0xqLOoScpZ
9.23am GMT
The speed and scale of the destruction of shareholder value in the last few weeks is shocking.
The 25% wiped off the FTSE 100 since 21 February is equal to roughly 470bn - a huge debt in pension pots, ISAs and tracker funds.
Back of envelope numbers, but, looks like FTSE 100 has now lost around 470 billion in less than three weeks. Now down 5.9% today.
9.15am GMT
Worryingly, the cost of insuring airline's debt against default is rising this morning too.
It gets worse and worse for European airlines. Trump's hammer blow causing CDS spreads to capitulate. Lufthansa 100bps wider at 422bps, curve continues to flatten...
9.14am GMT
The CBOE VIX index, which tracks volatility in the markets, have surged to its highest level since 2008, Reuters reports.
That shows just how scared investors are about situation today.
9.11am GMT
The EU-wide Stoxx 600 has plunged by 6.7% this morning, with markets an absolute sea of red.
The technology sector is down 8%, consumer cyclicals have lost 7%, industrial groups are down 6.9% and banks have lost another 6.6%.
9.05am GMT
Wild trading in London has driven the FTSE 100 as low as 5,482 points, down over 6% today.
Every single company on the blue-chip index, and on the smaller FTSE 250 index, is down.
Cash Limit down (5%) levels:
DOW 22366.9
S&P 2603.8
Nasdaq 7604.5
Russell 1199
As usual these widen to 7% ,13% & ,20% with the US open (1330 GMT).
"Covid-19 has triggered a chain reaction across markets that could prove unprecedented.
"The travel ban is a major over-reaction from President Trump and economies and markets globally will pay the price.
8.55am GMT
WH Smith shares have tumbled 17% this morning after the retailer issued a profit warning because of the coronavirus pandemic.
The company flagged a "significant impact" on its shops at airports in Asia Pacific, which accounts for 5% of its travel division's revenues. And in the last fortnight, passenger numbers at airports in the UK (60% of revenue), the US (25% of revenue) and Europe have also dropped.
The outbreak could also affect high street spending in the UK, and will drag down WH Smith's revenues and profits this year. The company warned that revenues would be 100m to 130m lower in the year to 31 August while profits before tax are likely to be 30m to 40m lower.
Trump's 30-day European travel ban is clearly not helping...
8.32am GMT
UK chancellor Rishi Sunak has said Britain has no plans to shut its borders.
Speaking on Radio 4's Today Progamme, Sunak said the evidence doesn't support such a move.
Rishi Sunak tells @BBCr4today the UK not planning to shut borders, saying 'there isn't evidence that interventions like closing borders or travel bans' would have a 'material effect' on spread of coronavirus
8.25am GMT
Cineworld isn't the only company warning about the impact of coronavirus this morning.
The upmarket estate agents Savills has flagged that the coronavirus pandemic has caused a big drop in deals in China and elsewhere in Asia - and this could also happen in other countries as the virus spreads.
"In Asia, particularly China, it is clear that COVID-19 is having a significant impact on transactional activity and may have a similar effect elsewhere, depending to an extent on the length and severity of each outbreak.
Our focus is on the welfare of our staff and clients and we have instituted protective measures in locations potentially affected by this virus."
8.24am GMT
Cineworld, the world's second-largest movie chain, has warned if the spread of the coronavirus forced the closure of all its cinemas for two to three months it would face breaching its financial covenants with lenders.
8.22am GMT
If this rout continues, the FTSE 100 index will soon hits its lowest level since 2012, when the eurozone debt crisis was raging.
8.15am GMT
European stock markets are also taking a bath:
Dax plunges below 10k, hits lowest level since 2016. pic.twitter.com/1U0RWaFDps
8.14am GMT
The FTSE 100 has slumped to its lowest level since February 2016.
Airline stocks are, predictably, being hit particularly hard. British Airways parent company, IAG, has lost 10.5%. EasyJet has slumped by 11.3%, while holiday maker TUI is off 8.7%
8.10am GMT
A fresh wave of selling in early trading has sent Britain's stock market slumping again.
The FTSE 100 index has plunged by 311 points, or 5.3%, down to 5565. Every single share is falling.
8.04am GMT
Neil Wilson of Markets.com also believes Donald Trump has made a bad situation much worse:
The World Health Organisation has finally declared the outbreak a pandemic - this is only going to force governments to feel they need to take more draconian measures, ramping up the uncertainty and the near-term economic shock. Volatility is not going anywhere, and we again see global stock markets tumbling on Thursday.
So much for Trump's stimulus. Instead of his late-night presidential address calming things, it only fanned the flames raging in markets. The president has gone from calling it a Democrat hoax to banning all travel from Europe in just 12 days.
8.01am GMT
Donald Trump's measures are likely to help push the world into recession, fears Mohamed El-Erian, chief economist of insurer Allianz.
El-Erian warned:
"The advanced economies are now likely to feel the full force of economic sudden stops that destroy both supply and demand at the same time," he said. "The collapse in economic activity risks being amplified by the economics of fear, uncertainty and adverse economic-financial feedback loops.
"I believe there is a high probability of global recession."
Related: Coronavirus: Trump suspends European travel as global recession fears intensify
7.47am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
"We made a lifesaving move with early action on China.
Now we must take the same action with Europe."
Related: Trump to suspend travel from Europe, excluding UK, amid coronavirus outbreak
European Opening Calls:#FTSE 5576 -5.12%#DAX 9835 -5.78%#CAC 4338 -5.92%#AEX 456 -5.83%#MIB 16830 -6.13%#IBEX 6989 -6.01%#OMX 1427 -5.59%#STOXX 2729 -6.07%#IGOpeningCall
Reality has swamped even the most ardent optimist in equity markets now. There is no doubt that the world is grappling with a coronavirus aggregate demand/supply shock, plus a deflationary wave on oil prices launched by Saudi Arabia and Russia. The bottom will be in sight when markets stop reacting to negative news. That is likely to be some way off yet.
Given Europe's incredibly poor response so far to the developing situation, with a flock of headless chickens running around appearing more focused, and with a US travel ban in place, European stock markets could be in for an outsized drop when they open this afternoon.
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