China virus spooks global equity markets

London’s FTSE 100 Index finished in the red as worries over the spread of a new coronavirus in China sent global stock markets lower.

The top tier fell by more than 1% at one stage after heavy overnight losses in Asia as fears mounted that the virus could become as big as the Sars crisis that also started in China in 2003.

But the FTSE 100 pared back some of its earlier losses to finish 40.7 points lower at 7610.7 – a drop of 0.5% – thanks to a better start to trading in the US.

The Dow Jones Industrial Average on Wall Street was fewer than 20 points lower at the time of close in London.

The Dax in Germany managed to eke out a 0.1% rise by the close, though the Cac 40 in France remained in the red, down 0.5%.

In currency news, the pound was boosted by better-thanexpected UK jobs figures.

The number of people claiming unemployment benefit dropped by 7,000 to just below 1.31 million in the three months to November, while wages were 3.2% up.

Many economists said the official data lessened the likelihood of an interest rate cut in next week’s decision by the Bank of England and could give policymakers room to pause.

Sterling rose 0.3% to 1.30 US dollars and was also 0.3% higher at 1.18 euros.

The biggest FTSE 100 risers were easyJet up 67p at 1517p, Legal & General ahead 5.4p at 307.6p, Melrose Industries 3.8p stronger at 241.7p. The biggest fallers were Evraz down 24.2p at 402p, Informa off 30.4p at 827p, Intercontinental Hotels Group 181p weaker at 4965p and International Airlines Group 19.4p lower at 637.8p.