Airlines and hotels bore the brunt of selling in London trade on Monday as concerns about the coronavirus’s spread in South Korea and Italy roiled markets globally.
“At the early stage of the coronavirus story, long-haul carriers like International Consolidated IAG, -8.35% and Lufthansa LHA, -8.22% [felt] the pain on account of their routes to China, but now short-haul airlines are taking a beating too,” said David Madden, markets analyst at CMC Markets UK.
The British pound GBPUSD, -0.3859% traded just below the $1.29 level, while the yield on the 10-year gilt TMBMKGB-10Y, -9.46% fall five basis points to 0.52%. Yields move in the opposite direction to prices.
The FTSE 100 UKX, -3.48% dropped 3% to 7178.51, with all the major European stock markets also getting a hammering. The U.K. actually outperformed other markets, notably Italy I945, -5.15% which fell close to 5%.