London's benchmark FTSE 100 index dipped below 7,000 points, erasing all gains won over the past year, while oil prices slid to the lowest levels in more than a year.
But Europe's main indices trimmed their losses in the afternoon as the open of Wall Street approached.British drinks group, the maker of Guinness stout and Smirnoff vodka, on Wednesday said the coronavirus would slash its annual sales by up to £325 million . Diageo, which produces also Baileys liquor and Johnnie Walker whisky, said sales for the group's financial year ending June 30 would be impacted by between £225 million and £325 million.said it expected to take a hit of 100 million euros in 1st quarter sales.
"What we appear to be seeing is the realization that global economic growth could well come to a halt, as the combined effects of a flu virus and belated attempts to stem the spread of it across the globe raise the prospect of an economic sneeze," said CMC Markets UK analyst Michael Hewson.