Another grim day on Footsie sees 3% fall

Concerns that the coronavirus outbreak could lead to a recession across Europe saw markets tumble again.

The FTSE 100 closed down 215 points – or just over 3 per cent – at 6,580.61, to end its worse week since 2008.

David Madden at CMC Markets UK said: “Equity markets in Europe have gone from bad to worse to awful as the selling pressure has gained momentum all week.

“What started out as a tumble on Monday has turned into panic selling as traders are terrified about the possibility of Europe undergoing an economic slowdown or a possible recession because of the coronavirus. The fear of the unknown is causing traders to lose their nerve and just cut and run as far as stocks are concerned.”

The airline and tourism sector continued to be among the hardest hit. Holiday operator On the Beach has warned that it will not meet expectations this year as the coronavirus outbreak strikes popular destinations.

The business has seen a “small but noticeable” reduction in demand for trips over the summer and warned that a big marketing push is now unlikely to pay off. Shares closed down 8.2p at 323.4p.

Premier Inn owner Whitbread has bought 19 hotels in Germany, spreading its wings in the market. The company will now have 52 hotels in the country. The hotels have 9,800 rooms across 25 cities. Shares closed down 180p at 3,894p

Car dealer and distributor Inchcape revealed soaring profits following a series of disposals. Shares closed up 14.5p at 577p.