The FTSE 100 share index closed 3.3 percent lower yesterday and the three main US indexes fell by around 3 percent, as fear of the coronavirus grew.

The FTSE 100’s sharpest drop since January 2016 came as the threat of a global pandemic rose, with Italy reporting 229 cases of the virus and announcing drastic containment measures, while South Korea announced over 830 cases.

While Matthew Cady, investment strategist at Brooks Macdonald, urged a conservative response, stating the firm’s central case remains that financial markets “will not be blown off course,” George Lagarias, chief economist at Mazars, argued tha...