(Reuters) - UK shares tumbled for a fifth straight session on Wednesday, as a U.S. warning to brace for a coronavirus pandemic raised fears of more global supply chain problems, with Rio Tinto and Diageo becoming the latest multi-national firms hit by the outbreak.
The Anglo-Australian miner (L:RIO) fell 1.4% after saying it would see a short-term impact from the epidemic, which has infected about 80,000 people and killed more than 2,700. The wider mining sector (FTNMX1770) was down 1.8%.
Diageo (L:DGE), the world's biggest spirits company, tumbled 3% as it said the epidemic could knock up to $260 million off its profit in 2020.
"When you have the likes of Diageo talking numbers and how this is going to affect profit and loss, in market terms, the reality factor is in your face," said Keith Temperton, a trader at Tavira Securities.
"I don't see that reversing until we see evidence of a peak in (virus) numbers and that's not going to happen until quite some time."
London's export-laden FTSE 100 (FTSE) slid 2% to a one-year low, while the domestically focussed mid-cap index (FTMC) shed 2.3%.
EasyJet (L:EZJ), British Airways-owner IAG (L:ICAG) and Burberry Group (L:BRBY) were among the biggest decliners.
The rapid spread of the deadly virus outside China sparked a sell-off that has erased about $3 trillion from the value of global stocks in the past four days.
European stock markets lost 2.7% on Wednesday, as the virus spread to countries including Algeria, Austria, Croatia, Italy, Romania, Spain and Switzerland.
Late on Tuesday, the U.S. Centers for Disease Control and Prevention alerted Americans to begin preparing for a likely pandemic.
Although the disease is believed to have peaked in China, where it first originated late last year, the resulting hit to factory output and consumer spending have threatened global economic growth in 2020.
A recent Reuters poll found that most major economies in Asia are expected to either slow significantly, halt or shrink outright in the current quarter.
Frankie & Benny's chain owner Restaurant Group (L:RTN) fell 4.8% after saying it would reduce the number of sites in its leisure business and temporarily suspend its dividend.
Among the few gainers, engineering firm Weir Group (L:WEIR) jumped 7.8% to the top of the mid-cap index after posting a higher annual profit.