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With the coronavirus outbreak spilling over three continents and intensifying global recession risks, the global equity markets extend the rout on Friday in tandem with the US Treasury yields.

Growing fears of a coronavirus pandemic have killed the appetite for risk assets, as the world stocks remain on track to book their worst week since the 2008 global financial crisis (GFC), down over 10%. This would wipe-out about $5 trillion in value of the global indices.

The European indices continue to see a bloodbath, taking the negative lead from its Asian and Wall Street peers. The sell-off deepens as the benchmark US 10-year Treasury yields fall to record lows, as markets brace for a recession. S&P 500 futures are down 2.35%, at the time of writing.

The coronavirus risks have hampered the global supply chains and created massive working capital problems for the companies, which will hit their earning this year.

Meanwhile, the pan-European index, the Euro Stoxx 500 sheds 5%, Germany’s benchmark DAX also follows suit and erodes over 5%, with UK’s FTSE 100 down 4.40% and French CAC 40 losing 4.30%.

Markets remain in a panic mode, as the virus spreads faster outside China, with about three-quarters of new infections reported so far.