LONDON, March 12 — European shares plummeted to their lowest in almost four years today as investors were rattled by dramatic travel restrictions imposed by US President Donald Trump in an attempt to halt the fast-spreading coronavirus.
Trump yesterday suspended travel from Europe to the United States for 30 days, responding to mounting pressure to take action against the outbreak, which the World Health Organisation now classifies as a pandemic.
The benchmark STOXX 600 index fell 4.9 per cent, with the sub-index of travel and leisure stocks shedding 8.6 per cent to hit its lowest in more than six years.
Joining a growing list of corporate casualties of the outbreak, WH Smith forecast a £40 million (RM218 million) hit to annual profit, while airport retailer Dufry said it would cut jobs after posting a 7.3 per cent slump in organic sales.
Their shares fell 17 per cent and 16.8 per cent, respectively.
A third high profile corporate victim of the outbreak, cinema operator Cineworld, sank another 20 per cent after it said that a worst case scenario for the virus outbreak could cast doubt on its ability to continue as a going concern. — Reuters
