European shares have fallen further as fears over the economic impact of the coronavirus pandemic continues to grip the world’s financial markets.
London’s FTSE 100 had opened higher on Tuesday, but the rally quickly ran out of steam and the index was down by about 1% during morning trade.
Other major European markets were showing similar falls.
Chancellor Rishi Sunak is expected to announce more financial help later for UK firms affected by the outbreak.
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Chris Beauchamp, chief market analyst at IG, said: “The government response from around the globe appears to be ramping up once again, as the chancellor prepares to unveil more measures to help support businesses.
“Whatever is announced, the measures will be expensive, but if they can form a credible package, and one co-ordinated with other governments, then markets may try to find a positive, although it may take time.”
On Monday, French President Emmanuel Macron said his government would guarantee €300bn of loans, and pledged that no French company would be allowed to collapse.
