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UK stocks plunged again on Friday leaving investors braced for a second straight week of losses as growth fears escalate from the spreading coronavirus outbreak. Even the US Fed rate cut earlier in the weak failed to dent the negative mood.
There were further hefty losses on US markets overnight, with the S&P 500 recording a rare triple-digit drop, falling 3.4% or 106 points, to 3,023.94. The Dow Jones and tech heavy NASDAQ also fell dramatically.
It was a similar story for Asian markets earlier in the day, which fell sharply. Japan's Nikkei 225 fell 2.7%, the Hang Seng in Hong Kong was down 2.3%, and China's Shanghai Composite dropped 1.2%.
Oil prices fell sharply, with Brent crude futures down more than 4.3% to $47.83 a barrel, while safe-haven gold continued to rally, promising its biggest weekly gain in nearly a decade. Gold was trading at $1,682.52 an ounce.
With new COVID-19 data emerging so quickly and frequently, markets look likely to sell-off particularly heavily on Friday, with investors reluctant to hold shares over the weekend when markets are closed.
The UK reported its first death from the disease, while the number of cases in the US rose to more than 200, stoking global slowdown fears and piling more pressure on the travel sector.
At midday, the UK benchmark FTSE
STOCKS ON THE HOOK
The biggest loser of the day is mining giant Anglo American after the group was forced to shut down a refinery in South Africa following an explosion.
Shares in the Anglo American tanked more than 8.5% to £16.826.
Cinemas operator Cineworld plunged nearly 8% to 112.15p after it said it could postpone capital investment and cut costs, should the coronavirus outbreak continue to worsen.
The share price fall came despite the company saying it had not yet experienced a material disease impact, having enjoyed a rise in admissions in the first two months of the year.
Outsourcing firm Capita plunged to 20-year lows as investors continue to worry about the company's delayed turnaround.
Capita stock crashed 38% yesterday after flagging the hold-up in its strategy rethink, while plunging into the red/ It reported pre-tax losses of £62.6m against profits of £272.6m in the previous year.
Pharmaceutical group AstraZeneca only shed nearly 2% to £73.63 as a trial for a bladder cancer treatment failed to improve patient survival rates.
Insurer and wealth manager Aviva fell 3.5% to 339.5p, on announcing it had agreed to exit Indonesia by selling its stake in PT Astra Aviva Life to joint venture partner PT Astra International, for an undisclosed sum.
SMALL CAP WRAP
Specialist bank PCF was a rare shiner, gaining 2.5% to 29.25p, as its lending portfolio swelled 55% in the first five months of its financial year.
Pharmaceutical services provider Open Orphan lost earlier 4% gains to stay flat at 5.78p despite winning a contract from a European biotech company that could end up being worth more than £10.2m.
Concierge platform for wealthy individuals Ten Lifestyle sunk nearly 8% to 76.5p after it warned of slowing annual revenue growth owing to the spreading coronavirus.
Student property investor GCP Student Living reversed 4% to 185.8p as lower valuation gains and higher finance costs weighed on its profit performance.
Investment company Murray International Trust sunk more than 3% to £10.44 as it posted a positive annual performance that nevertheless missed its benchmark.
Touchstone Exploration shed 0.7% to 37.25p, even as its proven reserves estimate rose 6% in calendar 2019, as it added discoveries at the Ortoire blocks in Trinidad.