04:02

Renewed fears over the coronavirus outbreak have prompted steep falls on European stock markets – most notably in Italy, which has suffered the most serious outbreak outside Asia.

The FTSE MIB stock market index in Italy has dropped by 4%. Shares on London’s FTSE 100 have fallen by 2.8%, more than 200 points. In Germany, the Dax index is down by 3.4%. France’s Cac 40 has lost 3.5%.

Budget airline easyJet and holiday provider Tui are the biggest fallers on the FTSE 100, both down by 9%, and British Airways owner IAG has lost 7%. Carnival, the cruise ship operator, has lost another 5%. The company has fallen steeply during 2020 after an outbreak of the virus on its Diamond Princess cruise ship.

The flight to safety for investors fearful of the economic consequences of the coronavirus outbreak has pushed gold prices to their highest since February 2013.



Spot gold prices rose by 2.1% on Monday to hit highs above $1,679 per troy ounce. Investors traditionally buy gold as a safe haven in times of economic uncertainty.