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Coronavirus: Stocks plunge amid US-Europe travel ban | |
(32 minutes later) | |
Shares have tumbled after US President Donald Trump restricted travel to the US from mainland Europe in a bid to slow the spread of the coronavirus. | |
London's FTSE 100 index sank more than 6%, with similar declines seen in other European markets. | |
Earlier, stocks in Asia saw big falls, with Japan's benchmark Nikkei 225 index closing 4.4% lower. | Earlier, stocks in Asia saw big falls, with Japan's benchmark Nikkei 225 index closing 4.4% lower. |
It followed steep losses in US shares on Wednesday, with the Dow Jones plunging by 5.8%. | |
In the UK, some of the biggest fallers in the FTSE 100 included travel companies such as the airline group IAG, which sank by 11%, and travel company Tui, down 9%. | |
The FTSE 250 index - which tends to include more UK-focused companies - was more than 7% lower. | |
Elsewhere in Europe, indexes in Paris and Frankfurt also dropped nearly 7%. | |
Oil prices also fell, with Brent crude down more than 5% at $33.91 a barrel. | |
On Wednesday, the World Health Organization declared the coronavirus outbreak a pandemic. | On Wednesday, the World Health Organization declared the coronavirus outbreak a pandemic. |
The falls came after Mr Trump announced a ban on travellers from 26 European countries entering the United States for 30 days, starting on Friday, in order to fight the coronavirus outbreak. | The falls came after Mr Trump announced a ban on travellers from 26 European countries entering the United States for 30 days, starting on Friday, in order to fight the coronavirus outbreak. |
In a televised address from the Oval Office, Mr Trump said the restrictions did not apply to the UK. | In a televised address from the Oval Office, Mr Trump said the restrictions did not apply to the UK. |
He also announced financial relief for US workers who are ill, quarantined or caring for others because of the illness. | He also announced financial relief for US workers who are ill, quarantined or caring for others because of the illness. |
The emergency action will also see the US Treasury Department deferring tax payments without interest or penalties for certain businesses and individuals affected. | The emergency action will also see the US Treasury Department deferring tax payments without interest or penalties for certain businesses and individuals affected. |
At the same time, the US government will provide capital and liquidity to small firms affected by the outbreak. | At the same time, the US government will provide capital and liquidity to small firms affected by the outbreak. |
The falls in US shares mean the Dow is now 20% below its recent high, pushing it into what is known as a "bear market". That brings to an end the longest streak of gains for US stocks to date, which started in 2009. | The falls in US shares mean the Dow is now 20% below its recent high, pushing it into what is known as a "bear market". That brings to an end the longest streak of gains for US stocks to date, which started in 2009. |
"It is not the virus itself, but rather the fear and panic related to the virus and the associated altered economic behaviour that could be a damaging tipping point, forcing the global economy onto a darker path," said Katrina Ell, a senior economist at Moody's Analytics. | "It is not the virus itself, but rather the fear and panic related to the virus and the associated altered economic behaviour that could be a damaging tipping point, forcing the global economy onto a darker path," said Katrina Ell, a senior economist at Moody's Analytics. |
What are your experiences relating to the coronavirus outbreak? Share your experiences by emailing haveyoursay@bbc.co.uk. | What are your experiences relating to the coronavirus outbreak? Share your experiences by emailing haveyoursay@bbc.co.uk. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
Or use the form below | Or use the form below |