Shares dive as panic grips global markets

Global stock markets are plunging amid concerns over the coronavirus, with some suffering their worst week since the financial crisis of 2008.

The virus outbreak has been shutting down industrial centres, emptying shops and severely curbing travel all over the world.

More companies are warning investors that their finances will take a hit because of disruptions to supply chains and sales.

Governments are taking increasingly drastic measures as they scramble to contain the virus.

The Dow Jones Industrial Average fell 650 points, or 2.5%, to 25,038 at one point. It had been down as many as 1,085 points earlier.

The S&P 500 lost 2.1% and the Nasdaq fell 1.4%. China’s benchmark index fell 3.7% and Germany’s DAX fell 3.9%.

Crude oil prices slumped 5.1% over worries that global travel and shipping will be severely curtailed and hurt demand for energy. The price of benchmark US crude has now fallen 16% this week.

Airlines and cruise operators have suffered some of the worst hits as flight routes are cancelled, along with travel plans.

Investors are concerned the stock market rout could have a psychological effect on consumers, making them reluctant to spend money and go to crowded places such as stores, restaurants and cinemas.

Nitin Jain, managing director of the retail practice at Alixpartners, said that while sales of everyday items like canned goods and medical supplies could increase in the short term, sales of luxury goods could tail off as high-end shoppers become nervous.