European stocks fall another 3% and sink further into correction territory as coronavirus grips markets

The pan-European Stoxx 600 fell 3% in early trade, travel and leisure stocks dropping 3.5% to lead losses as all sectors and major bourses slid sharply into the red.

European stocks entered correction territory on Thursday, falling 10% below the record highs seen on Feb. 19 last year, as the rapid spread of the coronavirus beyond China caused global markets to nosedive.

Seven major Asia-Pacific markets have also fallen into correction territory while stateside, the Dow plunged 1,200 points on Thursday, its biggest one-day point drop ever. The S&P 500 and Nasdaq each took just six days to fall from record highs into correction territory.

Global stocks are set for their worst week since the financial crisis in 2008, with the global MSCI ACWI index down 9%, while the Stoxx 600 is on course for its worst week since October 2008.

As of Thursday, China had confirmed 78,824 cases and 2,788 deaths, while South Korea confirmed an additional 256 cases to bring its total to 2,022. First cases have now been reported in New Zealand and Nigeria.

In other news, Britain set a frosty tone for its talks with the European Union, threatening to walk away from negotiations for a new free trade agreement if significant progress is not made by June.

In corporate news, Thyssenkrupp has agreed to sell its elevators division to a consortium of Advent, Cinven and Germany’s RAG foundation in a 17.2 billion euro ($18.7 billion) deal, the company announced late on Thursday. Thyssenkrupp shares climbed 0.6% in early trade.

Stocks on the move

Rolls-Royce was the only stock offering any significant gains on Friday, climbing 4.8% after a strong earnings report.

British Airways parent IAG tumbled 6.4% after warning of an expected hit to earnings from the coronavirus outbreak.

Belgian pharmaceutical research company Galapagos plunged 9.5% while Altice Europe slid 8%.