Italian stocks suffered their biggest daily decline since 2016 on Monday, as the euro zone's third-largest economy grappled with the largest coronavirus outbreak outside of Asia. European markets screeched lower with the FTSE MIB index closing down 5.43% at 23,427. Shares of Italian banks fell sharply while the stock of Juventus soccer club was briefly halted after falling 11%. There are widespread concerns over the spread of the virus in northern Italy; the country now has over 220 confirmed cases, and local media reported a seventh death due to the virus as of Monday afternoon, with a sharp spike in cases over the weekend.

The government has placed around a dozen towns in the north under quarantine with the wealthy regions of Lombardy and Veneto — where the cities of Milan and Venice are located respectively — the focus of the rise in coronavirus cases. The regions make up around 30% of Italy's economic output, while the majority of the quarantined towns are just south of the financial hub of Milan. Schools, museums, universities and cinemas have been closed while other public events, including Serie A soccer matches, have been canceled. Milan's opera house, La Scala, canceled performances and while Giorgio Armani's fashion show went ahead as part of Milan Fashion Week, no buyers or media were present. Venice's world-famous Carnival, which attracts thousands of visitors every year, was due to end on Tuesday but was cut short on Sunday as the government introduced "urgent measures" to contain the virus, including restricting access in and out of affected areas. It's reported that the measures are affecting around 50,000 inhabitants.

A woman wear a protective mask in Venice, Italy, on February 23, 2020 due to concerns over coronavirus infection. The carnival was suspended due to the coronavirus outbreak in northern Italy. NurPhoto

The virus will be another blow to Italy's already weak economy which is only expected to grow 0.5% in 2020, according to Bank of Italy forecasts made in December. Earlier in February, and before the virus hit the country, the bank warned that the coronavirus could have a significant impact on the Italian economy. Austria is reportedly considering border controls with Italy, having already suspended train services across the border. On Sunday evening, Austria refused entry to a train coming from Italy after the Italian State Railways informed Austrian train operator OBB that there were two people with fever symptoms on board, Sky News reported. The suspension of train services was later lifted, however. Meanwhile, concerns over the virus and quarantine measures have prompted panic-buying with Twitter users showing various supermarkets in the north with empty shelves. Italian newspaper Corriere della Sera reported Monday that latex gloves, hand disinfectant gel and bleach products were in short supply as inhabitants sought to protect themselves. Tweet: Tweet: Italy's authorities have scrambled to contain the spread of the virus but the head of the country's Civil Protection Agency, Angelo Borrelli, conceded Sunday that it was still trying to find "patient zero," the first carrier of the virus in the country. "We still cannot identify patient zero, so it's difficult to forecast possible new cases," Borrelli told a press conference. The World Health Organization is sending a special mission to Italy Tuesday to try to track down more details on the source of the infections.

Residents wait to be given access to shop in a supermarket in small groups of forty people on February 23, 2020 in the small Italian town of Casalpusterlengo. MIGUEL MEDINA