London stocks shed 2% as pandemic fears spark flight to safety

London-listed shares plunged 2% on Monday as a surge in new coronavirus cases outside China sparked fears of a pandemic, sending investors scurrying for the safety of gold and hammering commodity-exposed stocks including miners and oil majors. The FTSE 100 fell to a two-month low, dragged by declines in BP Plc and Royal Dutch Shell Plc. Mining stocks fell over 3% to their lowest level in three weeks.

Global stocks fell and oil prices tumbled more than 2% as sharp rises in new virus cases in Iran, Italy and South Korea raised concerns about a bigger hit to the world economy than previously feared. Conversely, gold prices surged to a 7-year high. The domestically focused mid-cap index was down 1.7% and was on course for its worst day in nearly a month.