IRISH and world stocks plunged yesterday as parts of northern Italy faced lockdown in response to the spreading coronavirus.
The Iseq All-Share Index plunged by more than 4.3pc, its biggest drop since the Brexit referendum result in 2016. Ryanair saw its market value take a hit of more than 13.5pc - or €2bn.
Penneys owner Associated British Foods warned that its supplies from China - provider of around two-fifths of its clothing lines - could be hit.
The Dow Jones Industrial Average shed nearly 1,000 points, led by tech stocks, after European bourses were pummelled and the Stoxx Europe 600 Index lost more than 4pc.
Apple shed 3.7pc, while Google owner Alphabet dropped 3.6pc and AMD Corp, a semiconductor chip maker that outsources production to Asia, plunged more than 8pc.
"With outbreaks of the coronavirus spreading and prospects for the global economy dimming, investors are abandoning risky assets for safe havens. Gold and the dollar are soaring," said Bob Schwartz at Oxford Economics.
Around Milan, Italy's financial capital, towns have been locked down and Italian bonds dropped amid fears that the coronavirus could push the economy into recession.
Even what had appeared to be modestly positive news for Europe - a rise in purchasing manager indices (PMIs) on Friday - was found on closer inspection to be supply chain disruption from China.
According to calculations by UBS, 60pc of the increase in the manufacturing PMI was due to delayed deliveries.
"Combined with already strong concerns about the disruption to supply chains, markets may well be pushed to have an even more pessimistic stance on the eurozone outlook," said ING foreign exchange strategist Francesco Pesole.
AB Foods said it had sufficient supplies for several months. "If delays to factory production are prolonged, the risk of supply shortages on some lines later this financial year increases," it said.