FTSE 100 drops 3% to 5,148 as emergency government moves to support companies fail to calm investors’ fears over coronavirus
The FTSE 100 plunged again on opening today as fears over the relentless global spread of the coronavirus intensified.
Stock markets dropped further as panic over the virus overshadowed sweeping moves from the US and UK governments to try to support companies and contain economic damage from the pandemic.
The FTSE 100 index of Britain’s biggest companies fell 146 points or 2.8 per cent shortly after opening to 5,148.53 today.
Investor sentiment in Europe has been crushed over the past month as countries imposed lockdowns to halt the spread.
Women walk in front of a quotation board displaying Tokyo Stock Exchange share prices today
Italy’s prime minister yesterday declared the virus was causing a ‘socio-economic tsunami’ as European leaders agreed to seal off external borders.
Michael James, managing director of equity trading at Wedbush Securities in Los Angeles, said: ‘Right now the predominant concern is that all the shutdowns of just about everything is going to lead to a recession.
‘The sentiment is being dominated by those fears far outweighing everything else.’
Following dramatic monetary policy easing by some of the world’s biggest central banks earlier in the week, US President Donald Trump pressed yesterday for a $1trillion stimulus package, while many other governments looked to fiscal stimulus.
European airlines and energy firms have been among the biggest decliners as the health crisis halts nearly all travel, crushes oil prices and cripples company finances.