// Coronavirus fears affect luxury retail sales
// FTSE 100 saw £44 billion wiped off of its value
// Luxury retail groups such as Louis Vuitton Moet Hennessy (LVMH) & Kering saw their shares drop
The value of the FTSE 100 has dropped by £44 billion and luxury retail groups have seen their shares drop as coronavirus fears continued to impact trading.
The new strain of virus in China triggered a market sell-off, with the luxury retail sector among those affected.
Luxury groups such as Louis Vuitton Moet Hennessy (LVMH), Christian Dior, Hermes and Gucci owner Kering – all reliant on Chinese demand – saw their shares drop earlier this week.
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LVMH shares were down 2.49 per cent in early trading, while Kering and Richemont stocks were trading more than three per cent lower on Monday morning.
British luxury retailer Burberry was also exposed to a drop-off in Chinese demand.
London’s main share index lost over two per cent while US stocks also opened sharply lower, after China saw a sharp rise in cases.
Global stock markets have dropped as concerns over coronavirus increased, with FTSE 100 reporting £44 billion was wiped off the value of its constituent companies.
Trading screens from Tokyo to London and New York turned red after China – the world’s second biggest economy – announced a rise in those affected with coronavirus.
Meanwhile, the timing of the outbreak is challenging considering the millions celebrating and travelling during Lunar New Year.
The market reaction came as China announced it would impose tougher security measures and travel restrictions in an effort to contain the virus.
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