Coronavirus: Shares face worst week since global financial crisis

US shares have sunk further as stock markets suffer their worst week since the global financial crisis of 2008.

The Dow Jones, hit by its biggest ever daily points drop on Thursday, fell another 3.7% in morning trade as fears over the impact of the coronavirus continued to grip investors.

The main European markets also fell sharply on Friday, with London’s FTSE 100 index down more than 3%.

Investors are worried the coronavirus impact could spark a global recession.

The news of more coronavirus cases, notably in Italy, has raised concerns of a much larger economic effect than previously expected.

In an interview with Sky News, Bank of England governor Mark Carney warned that the coronavirus outbreak could lead to a downgrade of the UK’s economic growth prospects.

Dozens of firms have warned of disruptions to their supply chains and a decline in consumer demand.

US tech giants Apple and Microsoft have both said their business will be affected, while US investment bank Goldman Sachs warned on Thursday that it now thinks the coronavirus will wipe out any growth in US company profits this year.

Shares in airlines have been especially hard-hit as travel bans are imposed and companies limit staff travel. On Friday, airline group IAG – which owns British Airways and Iberia – said its earnings had been affected by “weaker demand” as a result of the outbreak.