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European shares sink again as Trump imposes travel ban

Published 12/03/2020, 09:15
Updated 12/03/2020, 09:18
© Reuters.  European shares sink again as Trump imposes travel ban
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(For a live blog on European stocks, type LIVE/ in an Eikon

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March 12 (Reuters) - European shares plummeted to their

lowest in almost four years on Thursday as investors were

rattled by dramatic travel restrictions imposed by U.S.

President Donald Trump in an attempt to halt the fast-spreading

coronavirus.

Trump on Wednesday suspended travel from Europe to the

United States for 30 days, responding to mounting pressure to

take action against the outbreak, which the World Health

Organisation now classifies as a pandemic. The benchmark STOXX 600 index .STOXX fell 4.9%, with the

sub-index of travel and leisure stocks .SXTP shedding 8.6% to

hit its lowest in more than six years.

Joining a growing list of corporate casualties of the

outbreak, WH Smith SMWH.L forecast a 40 million pound ($51.25

million) hit to annual profit, while airport retailer Dufry

DUFN.S said it would cut jobs after posting a 7.3% slump in

organic sales. Their shares fell 17% and 16.8%, respectively.

A third high profile corporate victim of the outbreak,

cinema operator Cineworld CINE.L , sank another 20% after it

said that a worst case scenario for the virus outbreak could

cast doubt on its ability to continue as a going concern.

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