Global shares have fallen drastically following President Donald Trump’s announcement that travel between the US and mainland Europe would be heavily restricted to help contain the spread of coronavirus.
On Wednesday, US markets experienced steep losses, including Dow Jones plunging by 5.8%, which caused a domino effect around the world.
London’s FTSE 100 has decreased by more than 5%, with similar declines seen in other European markets.
Stocks in Asia have also been affected, with Japan’s Nikkei 225 index closing 4.4% lower.
Australian shares plunged 7.4% to the lowest level in more than three years while Seoul’s Kospi KS11 fell 4.8% to 4 and a half year lows. Thai shares SETI sank 8.8% to 8-year lows.
In the UK, every single share in the FTSE 100 index was trading lower. Once again, travel companies saw some of the biggest falls, with airline group IAG down 7% and Tui falling 9%.
As the White House continues to look into the pandemic’s severity, the travel restrictions – which exclude the UK – are to be implemented from Friday 13th March and will last for 30 days.
During the rare address to the nation, Trump defended his administration’s response while laying blame on the European Union for not acting quickly enough to address the “foreign virus”, saying US clusters had been “seeded” by European travellers.