Coronavirus is seeing markets tumble into red

Global stock markets have tumbled into the red amid growing fears over the spread of the coronavirus as China locks down cities to contain the outbreak.

London’s FTSE 100 Index closed 64.25 points lower at 7,507.67, a drop of 0.9%, mirroring heavy declines across indices worldwide, after China locked down Wuhan, where the new coronavirus started, and a second city, as contagion efforts escalated.

Investors were sent heading for the exit as the number of cases soared to 600 in China, with suspected cases in the US and people also being tested in Scotland.

Stocks with close ties to China, such as mining giants, were among the hardest hit.

Fiona Cincotta, a financial analyst at Gain Capital, said: “Quite simply, traders are not prepared to keep risk on the table until there is more clarity over how this will develop.”

Across the Atlantic, the Dow Jones Industrial Average was about 200 points lower at the time of close in London.

Indices dropped throughout Europe, with the Dax in Germany off 0.9% and France’s Cac 40 finishing 0.7% lower.

In currency markets, the pound slipped back after three positive sessions, falling against a stronger US dollar.

Sterling dropped 0.2% to 1.31 US dollars, but lifted 0.2% to 1.19 euros.

Mining stocks led the UK equities declines, with Evraz the hardest hit in the FTSE 100, with a fall of 6%, down 25.9p to 374.7p.

Airlines also took the brunt of the virus worries, as British Airways owner International Airlines Group dropped 4%, or 25p, to 609p.