Traders are warning that the 'worst is yet to come today' after the New York stock exchange suffered its biggest ever drop and £152billion was wiped off FTSE shares.
European and US stock markets slumped painfully again Thursday as new coronavirus infections spread outside China, exacerbating fears of a global slowdown.
While the markets in Shanghai and Hong Kong closed higher, Europe and New York saw a sea of red. London, Frankfurt and Paris all posted losses of more than three percent on the day.
Wall Street also took a beating, with major indices shedding more than four percent in what is shaping up to be the US market's worst week since the 2008 financial crisis.
The Dow shed nearly 1,200 points, or 4.4 percent, taking its losses for the week to more than 11 percent.
Oil prices plunged by more than four percent at one point before recovering somewhat, while the yen gained as traders turned to a traditional haven in times of economic turbulence.
'There was more coronavirus carnage on the markets,' Spreadex analyst Connor Campbell said.
This is 'one of the worst weeks in recent memory and terrifyingly, it's not over yet,' he said. 'Friday is a tricky proposition.'
The benchmark index has now dropped 8 percent in four days amid concerns over more turmoil, with traders warning the virus could lead to 'anaemic global growth'.
The Dow Jones Industrial Average slid 2.2 percent down 599 points to 26, 367. Earlier yesterday, it was down as much as 960 points. The Nasdaq slid 2.5 percent.
Meanwhile American Airlines fell 5.2 percent as airlines continue to feel pain from disrupted travel plans and suspended routes.
The yield on the 10-year Treasury fell further into record low territory, to 1.28 percent from 1.31 percent late Wednesday.
The market's sharp drop this week partly reflects increasing fears among many economists that the U.S. and global economies could take a bigger hit from the coronavirus than they previously thought.
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