Representative image Photograph:( Reuters )
The outbreak of the coronavirus has led China to impose tight travel restrictions on a number of cities including WuhanBeijing.
In initial trades, London's benchmark FTSE 100 index of major blue-chip companies sank 1.6 per cent to 7,468.72 points compared with the close on Friday.
"Market participants in Europe have grave concerns about coronavirus as the death toll increased to 80 and more than 2,700 victims infected in China," said Ava Trade analyst Naeem Aslam.
He added: "The bottom line is that the virus has become deadly and it has caused a major panic in markets."
The outbreak of the coronavirus has led China to lock down the epicentre of the disease, Wuhan, a city of 11 million people, while also imposing tight travel restrictions on a number of other cities including Beijing.