UPDATE 2-London's main index hammered as virus fears derail global stocks

* FTSE 100 down 3.6%, FTSE 250 drops 2.98%
* Virus spread threatens global economic growth
* Cruise operator Carnival hits lowest since 2012
* Auto parts, travel, banks post strong weekly declines

(Adds index close, news items)
By Devik Jain and Noor Zainab Hussain
March 6 (Reuters) - London's bluechip index ended the week
in the red as growing economic risks from the coronavirus
outbreak fuelled investor worries and added to the sell-off on
global stock markets.
Fears about the virus also sparked a flight to the safety of
bonds.
A 3.6% fall for the FTSE 100 .FTSE erased its gains from
earlier in the week. Only six stocks on the index ended Friday's
session in the black, and only British Airways owner IAG
ICAG.L registered a rise of more than a percent.
The domestically focussed mid-cap index .FTMC dipped about
3%, joining the FTSE 100 in its second straight week of
declines, with event organiser Hyve HYVE.L falling 16.4% a day
after it said revenue and profit in 2020 will be hit after it
postponed events in Asia and the United States because of the
epidemic.
"It was a sour end to the week for markets as investors'
hopes over a full blown equity recovery were dashed," Russ
Mould, investment director at AJ Bell, said.
"Following renewed selling on Wall Street last night, Asia,
Europe and UK stocks traded lower on Friday as markets remained
very fearful about the economic and social impact of the
coronavirus," he added.
Interest rate-sensitive bank stocks .FTNMX8350 shed 2.3%,
as traders bet on further monetary easing by the U.S. Federal
Reserve after an emergency rate cut on Tuesday that sent
benchmark Treasury yields to record lows. USD/
London's food and drug retailing sector was the biggest
casualty FTNMX5330 , behind travel and leisure .FTNMX5750
stocks, as the epidemic wreaked havoc on supply chains and
forced some European companies to evacuate offices.
Airlines and cruise operators continued to slump on crippled
travel demand.
Britain said on Thursday that an older person with
underlying health problems had died of the virus, and the number
of infections had risen to 116 by Friday.
The resulting hit to business activity has prompted sharp
cuts to global economic growth forecasts for the year, while the
market's fear gauge .VIX marked its sharpest jump on record in
this quarter.
"Non-stop news headlines about the spread of coronavirus has
caused investors to be very concerned about a global recession.
This tension is likely to remain front and centre until we get
some evidence that the virus can be contained," Mould said.
Underlining the worries about economic disruption, cinema
operator Cineworld CINE.L slid 8.6% despite saying it had not
observed any significant impact on its movie theatre admissions.
Cruise operator Carnival CCL.L hit its lowest level since
2012 and was among the top decliners on the FTSE 100, a day
after its Grand Princess ocean liner was barred from returning
to its home port of San Francisco on virus fears. Among other stocks, miner Anglo American AAL.L fell 8.7%
to the bottom of London's top index. It owns 77% of South
Africa's Anglo American Platinum AMSJ.J , which declared force
majeure and cut its production outlook after an explosion led to
a shutdown of processing facilities.