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* FTSE 100 down 1.6%, FTSE 250 falls 2.1%
* StanChart, Persimmon, miners fall in ex-div trading
* Deutsche Bank cuts UK 2020 GDP growth forecast
* Broadcaster ITV slumps after flagging lower ad revenue
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By Devik Jain and Noor Zainab Hussain
March 5 (Reuters) - London's bluechip index ended its
three-day winning streak on Thursday, with investors spooked by
concerns over global economic growth as more businesses were
bruised by the coronavirus outbreak.
The FTSE 100 index fell 1.6% and the mid-cap index
closed the session 2.1% lower.
The fall in the top index was led by broadcaster ITV
, which slumped 12% after it warned of lower ad revenue
in April.
Cruise operators Carnival's London-listed shares
sank 7.3% after its Grand Princess ocean liner was barred from
returning to its home port of San Francisco on coronavirus fears
after at least 20 people aboard fell ill.
Asia-focussed bank Standard Chartered, housebuilder
Persimmon, and miners BHP Group and Rio Tinto
, which were all trading without dividend entitlement,
dropped between 4.7% and 7.1%.
Britain's stock markets have rebounded since Monday
following their worst week since the 2008 financial crisis, as
early evidence of the economic hit from the outbreak spurred
hopes of monetary stimulus from central banks.
Signs of economic damage continues to pile up, however, with
British regional airline Flybe a high profile casualty on
Thursday as it shut operations just a month after a
publicly-sanctioned rescue.
"RUNNING FOR THE HILLS"
Shares in British Airways owner IAG fell 5.3%,
while EasyJet was 4.4% lower after an industry body
warned that the coronavirus epidemic could rob passenger
airlines of up to $113 billion in revenue this year, more than
three times a projection it made just two weeks ago.
"Health fears have ramped up again and traders are running
for the hills. Even though governments along with international
bodies have pledged huge sums of money to help combat the health
crisis, dealers are still scared," CMC Markets analyst David
Madden, said.
"It is as if the more money is thrown at the problem, the
more nervous dealers become - the intervention acts as an
indication of weakness," he added.
A surprise interest rate cut by the U.S. Federal Reserve on
Tuesday pumped yet more money into financial institutions but it
also added to a growing sense of panic among investors coddled
by a decade of constant stock market gains.
The IMF now predicts that global GDP could see its slowest
growth since 2008-2009 this year and Deutsche Bank analysts on
Thursday cut their forecast for British economic growth in 2020
to just 0.5%.
Deutsche Bank's economists outlined a range of expected
official responses to the outbreak, including two cuts in
interest rates by the Bank of England by May.
"You've got additional virus cases in the UK, California
declaring an emergency – that has again got people on edge,"
Russ Mould, investment director at AJ Bell, said.
On the midcap index, UK outsourcer Capita Plc sank
almost 40% on signs its restructuring drive would require more
capital.
(Additional reporting by Shivani Kumaresan and C Nivedita in
Bengaluru; Editing by Sagarika Jaisinghani and Patrick Graham
and Angus MacSwan)
