European stock markets have lost about $ 474 billion in the escalation of cases of coronavirus outside China, with investors re-evaluating the likely impact of the outbreak turning into a pandemic.

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According to Reuters, Milan shares fell 5.4% to witness its worst day since mid-2016, with Italy announcing the largest outbreak of the virus in Europe with at least six deaths and more than 200 infections, which will likely affect the country's already depressed economy. p>


The pan-European STOXX 600 index fell 3.8% to 411.86 points, marking the biggest one-day drop in percentage terms since Britain voted in favor of an exit from the European Union in June 2016.


A jump in casualties in South Korea and Iran has led to widespread stock exits and safe havens.


Today it is clear that the markets did not expect this to be a big problem outside China ... investors will become much more sensitive than now, ”said Craig Erlam, chief market analyst in Oanda.


It can be said that (there was) a slack factor over the past month due to the general belief that conditions will improve - and such a mentality has not helped.


Airline stocks were among the worst performers on Stokes 600, with EasyJet, Ryanair, Air France and Lufthansa down between 7.4 and 12.6%. The European travel and entertainment sector fell 6%, the weakest.


German stocks fell 4%, despite a survey by the Ifo institute that showed unexpectedly high business confidence in February.