FTSE 100 tumbles 1% as China virus scare hits stocks

London's FTSE 100 skidded to a near two-week low on Tuesday, with global markets rattled by the spread of a new coronavirus in China, while traders eyed jobs data which could dictate whether the Bank of England will cut interest rates this month.

China reported a fourth death from the virus, which is being likened to the deadly 2002/2003 spread of Severe Acute Respiratory Syndrome (SARS), just ahead of the Chinese Lunar New Year holiday. The FTSE 100 shed 1%, as Asia-exposed Burberry led losses with a 3.3% slide while financial stocks were also hit by Swiss bank UBS cutting its mid-term targets. The FTSE 250 gave up 0.8%.

However, low-cost airline EasyJet outshone the blue-chip bourse with a 2% rise after it forecast improvement in its first-half winter performance.