Coronavirus fears wipe £200bn off UK firms’ value
London’s FTSE 100 share index has seen one of its worst weeks since the depths of the financial crisis in 2008 as markets continue to reel from the impact of the coronavirus.
Shares have shed almost 13% of their value, wiping £210bn from the value of companies on the index. Investors are worried after a surge in the number of companies warning about the impact of the outbreak on firms.
US markets are also in the red, with markets around the globe in retreat. “The panic mode is full on,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“The coronavirus outbreak has certainly hit businesses, and it might have a longer-than-expected negative impact on company earnings and global growth,” she added.
Globally, the dismal week on stock markets has so far wiped about $5 trillion from the value of listed companies around the world, according to Capital Economics’ chief economist Neil Shearing.
He said that affected the value of pension pots and could make it more difficult to borrow money if banks become more fearful of taking risks.
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