Unstable market27 Feb 2020 07:44
(Alliance News) - Stock prices in London are set to dive at the open on Thursday as the coronavirus outbreak continues to spread outside of China.
IG says futures indicate the FTSE 100 index of large-caps will plunge 174.97 points to 6,867.50 on Thursday. The FTSE 100 index closed up 24.59 points, or 0.4%, at 7,042.47 on Wednesday.
"With more new cases being reported outside China, than inside, the centre of gravity as far as the coronavirus has shifted towards Europe, and the rest of the world. This shift has prompted real concerns about the longer-term economic impact of this virus on trade, on ports, on supply chains, and on consumer confidence," said Michael Hewson at CMC Markets.
"These concerns have resulted in a rollercoaster last 24 hours for global stock markets, with European markets managing, with the exception of the DAX managing to close yesterday in positive territory, as attempts were made to try and ascertain whether we had managed to find a short term base, after some precipitous declines over the last few days," he continued.
However, stocks in the US and Asia slipped further overnight.