Stock market sell-off continues as companies count cost of coronavirus crisis – business live

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Investors around the globe are reeling from the worst day in two years, as anxiety over the coronavirus crisis hit fever pitch.

Stocks tumbled across the globe on Monday, with America’s Dow Jones shedding more than 1,000 points by the close. That’s its third biggest points decline ever, as technology companies, energy providers and mining firms bore the brunt.

The corporate cost of the crisis is mounting too. Overnight, Mastercard cut its financial outlook due to the outbreak and United Airlines withdrew its full-year 2020 guidance.

Japan’s stock markets has suffered heavy losses overnight, as traders catch up with events after a holiday on Monday. The Nikkei index has fallen by 3.34%, or 781 points, to 22,605 in a spate of nervy selling.

Australia’s S&P/ASX index has fallen again today, losing another 1.6%.

European stocks also shed over 3% yesterday, with the Italian FTSE MIB sliding by over 5% after a spate of coronavirus deaths in Italy.

Fears of a pandemic, with massive implications on global supply chains and world economic growth, are rife.

But after very heavy losses across the board yesterday, we may see a small recovery in European stock markets today. Britain’s FTSE 100 has just opened 30 points higher, at 7,186.

That’s only a teensy recovery, mind, as it plunged by 247 points during Monday’s rout.

Investors are glued to the latest reports of infection levels, with the global death toll now over 2,600.

So there’s little chance of the markets calming down soon, argues Michael Hewson of CMC Markets.

There is no question financial markets are coming round to the realisation that this particular crisis is likely to have a slightly longer shelf life than many thought was the case a couple of weeks ago, however flu outbreaks are hardly anything new. They happen every year and according to the World Health Organisation flu kills up to 650,000 a year, yet markets are reacting to an outbreak that has so far only affected a fraction of that number.

That is not to downplay the seriousness of the coronavirus outbreak, given how little we know about it, but it could be argued that the reaction of governments to the outbreak in closing borders and restricting movement is actually making things worse, as well as sowing confusion and fear amongst their populations.

For now, there appears little prospect that financial markets look likely to settle down in the short term, which means investors will have to get used to an extended period of uncertainty and volatility.

The agenda

• 11am GMT: CBI’s index of UK retail sales: expected to rise to 4, from 0 in January
• 2pm GMT: The S&P/Case-Shiller index of US house prices
• 3pm GMT: US consumer confidence survey for February: expected to rise to 132, from 131.6