(Alliance News) - Stock prices in London set to open sharply lower again on Friday, following the sell-off in the US and Asia overnight, as coronavirus fears continue to hurt global markets.
IG futures indicate the FTSE 100 index is to open 265.50 points, or 3.9%, lower at 6,530.90. The FTSE 100 index closed down 246.07 points, or 3.5%, at 6,796.40 on Thursday.
"As if this week hasn't been bad enough for markets, the slide in equities accelerated yesterday as European markets underwent their worst day this week, as more and more countries reported fresh cases of the coronavirus," said CMC Markets UK Chief Market Analyst Michael Hewson.
Nigeria on Friday announced the first confirmed case of the novel coronavirus in sub-Saharan Africa.
The case is an Italian citizen who works in Nigeria and returned from Milan earlier this week, Health Minister Osagie Ehanire said in a statement on Twitter.
"The patient is clinically stable, with no serious symptoms, and is being managed at the Infectious Disease Hospital in Yaba, Lagos," Ehanire said.
Italy has become a hotbed of infection in recent days, with the largest outbreak in Europe.
"While European markets underwent their worst decline this week, closing the day over 3% lower, not to be outdone US markets went further closing the day over well over 4% lower, with the S&P 500 on course for its worst week since 2008," said Hewson.
The Dow Jones Industrial Average dropped 1,190.95 points, or 4.4%. The S&P 500 lost 4.4% and the Nasdaq Composite 4.6%.
Against the yen, the dollar was trading at JPY108.86 early Friday in London, down from JPY110.58 late Thursday.
The pound was quoted at USD1.2882 early Friday, firm from USD1.2867 at the London equities close Thursday. The euro was at USD1.1005 early Friday, firm from USD1.0984 late Thursday.
The Nikkei 225 index closed down 3.7% in Tokyo. The Hang Seng index in Hong Kong is down 2.7%. The Shanghai Composite is down 3.0% in late trade.
Japan's industrial production grew for the second consecutive month in January, while the unemployment rate rose for the first time in four months, government reports showed.
Industrial production was up 0.8% from the previous month, better than the median forecast of a 0.2% growth by analysts surveyed by the Nikkei Business Daily newspaper.
Manufacturers surveyed by the Ministry of Economy, Trade & Industry expect industrial production to rise 5.3% in February and to fall 6.9% in March as the outbreak of the novel coronavirus that originated in China has disrupted global supply chain.
In commodities, gold was quoted at USD1,632.51 an ounce early Friday, lower than USD1,655.10 late Thursday. Brent oil was at USD50.78 a barrel, down from USD51.32.
"Brent prices hit their lowest levels since December 2018, over concerns that the virus will prompt a global slowdown, weaken consumer confidence, and reduced travel prompting lower demand, thus weighing on prices," said Hewson.
The economic events calendar on Friday has Germany unemployment and inflation data at 0855 GMT and 1300 GMT respectively In the afternoon, there are US personal consumption expenditure figures at 1330 GMT - the core reading is the Fed's preferred gauge of inflation.
The UK corporate calendar is full for a Friday. There are annual results from London Stock Exchange Group, International Consolidated Airlines Group, Irish building materials firm CRH, property portal Rightmove, and from jet engine maker Rolls-Royce Holdings.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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