Home Breaking Dow Jones drops 1,000 points over coronavirus outbreak

Dow Jones drops 1,000 points over coronavirus outbreak

by LLB Reporter
24th Feb 20 3:55 pm

On Monday New York’s Dow Jones industrial average opened at almost 1,000 points lower or by 3.4%.

US trader’s took the lead from plummeting declines across Asia and Europe as the FTSE 100 share index opened at 2% lower and was 3.5% lower by mid-morning, whilst Milan’s stock market plummeted 4.5%.

Italy has announced on Monday afternoon their seventh death from the coronavirus and more than 50,000 people remain in forced quarantine in the Lombardy region.

More than 30 countries have now confirmed the spread of the virus which appears to have shaken traders over the global impact.

Russ Mould, investment director at AJ Bell, said: “Italy’s lockdown, as the country tries to control the worst outbreak of the virus in Europe, has caused investors to panic about how business and society will be affected.

“A large spike in coronavirus cases in South Korea has also added to market concerns.

“There has been so much complacency in recent weeks from investors, despite clear signs that China’s economy is facing a large hit and that supply chains around the world were being disrupted.

“Markets initially wobbled in January, but had quickly bounced back, implying that investors didn’t see the coronavirus as a serious threat to corporate earnings.

“They may now be reappraising the situation.”

The FTSE 100 plummeted on Monday morning with around £40bn being wiped off the value of shares.

Markets across Europe, Germany, France and Italy suffered even larger declines over the coronavirus outbreak.

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