FTSE 100 falls 174 points
Coronavirus weighs on markets as death toll hits 106
A health official at a checkpoint in Hubei province
UPDATE 28 JAN: Coronavirus continues to weigh on global markets, wiping billions off company values as the number of confirmed deaths rises to 106 and the authorities admit that its spread is accelerating.
The FTSE 100 plunged 173.93 points or 2.3% to close at 7,412.05 in one of its biggest one day falls in recent months but recovered slightly when markets opened on Tuesday (9am: up 5.6pts). Other European markets were down by more than 2% on Monday. The biggest hits were felt by luxury, airline and hotel stock, which benefit from Chinese consumers.
Analysts at Bernstein said Chinese nationals accounted for just 2% of the global luxury goods market in 2003 against 35% in 2019.
Luxury retailer Burberry, highly exposed to the Chinese consumer, closed down 4.6% with French peers LVMH and Kering shedding 3.7% and 3.6% respectively.
US stocks suffered their worst day in over three months . The Dow Jones Industrial Average fell 453.93 points, or 1.57%, the S&P 500 lost 51.84 points, or 1.57%, and the Nasdaq Composite dropped 175.60 points, or 1.89%.
Chinese factories ordered staff to work from home and travel is restricted as investors are becoming increasingly nervous about the coronavirus.
Market analysts are now working out the impact on the global economy. Growth in China slipped from 11% to 9% following the SARS outbreak in 2002-03 although it also coincided with a general slowdown.