London stocks hammered as pandemic fears intensify

UK shares tanked on Friday, with both benchmark indexes firmly entering correction territory, as fears mounted that the coronavirus outbreak could turn into a pandemic and spark a global recession. The blue-chip FTSE 100 fell 3.2% and was on track for its worst week since the 2008 financial crisis. The index has now lost about 13% since a recent peak on Feb. 12.

The mid-cap FTSE 250 tumbled 2.5%, also eyeing its biggest weekly decline since 2008, as the spread of the virus deepened in countries outside China and crippled supply chains. Trade-reliant miners and oil majors shed 4% and 3.3%, respectively. The travel and leisure sector fell 4.1% to its lowest level since 2016, as drastic containment measures cut demand for air travel and hotels.

British Airways owner IAG tumbled 6.9% to its lowest level in over four months after the airline said it would cancel some flights to and from Italy, Singapore and South Korea.