UPDATE 2-UK shares briefly slip into correction as coronavirus wreaks havoc

* FTSE 100 down 3.5%, FTSE 250 slides 4.1%
* Both indexes briefly in correction
* StanChart slips after warning on virus hit
* WPP slides as Q4 disappoints
* Hikma outshines on bright forecast

(Writes through)
By Sagarika Jaisinghani, Devik Jain and Shashwat Awasthi
Feb 27 (Reuters) - London stocks plummeted on Thursday, with
both benchmark indexes briefly confirming a correction, as a
sharp rise in the number of coronavirus cases outside China
raised fears of a global pandemic and crippled risk appetite.
The FTSE 100 .FTSE tumbled 3.5% to its lowest since
January 2019, with heavyweight banks, miners and oil stocks
dragging the most. At its lowest in the session, the index was
more than 10% below its peak from just a week ago.
The domestically focussed mid-cap index .FTMC tanked 4.1%,
its biggest one-day drop since June 2016 and a fifth straight
day in the red. It also traded more than 10% lower from its
recent peak on Feb. 20 during the session.
Britain's hardline stance on trade talks with the European
Union heaped pressure on domestic equities already battered by
concerns over the virus. "The sharp declines in equity markets in the last week have
turned investor sentiment on its head in a fashion that is
almost schizophrenic in nature," CMC Markets analyst Michael
Hewson said.
Investors grew increasingly worried about the impact of the
virus outbreak on global supply chains, and Standard Chartered
joined the likes of Apple AAPL.O and Microsoft MSFT.O in
warning of a hit from the epidemic.
The Asia-focussed bank STAN.L fell 3.6% after saying that
a key earnings target would take longer to meet as the epidemic
added to headwinds in China and Hong Kong. Rival HSBC HSBA.L slipped 4.6% as the stock also traded
ex-dividend.
Sectors most exposed to China for revenue were battered,
with autos .FTNMX3350 and miners .FTNMX1770 losing 4.2% and
4.8%, respectively.
Both the FTSE 100 and the FTSE 250 are currently on course
for their biggest weekly drop since August 2011. European
markets and Wall Street also slid into correction territory.
"This is one of the worst weeks in recent memory - and
terrifyingly, it's not over yet," Spreadex analyst Connor
Campbell remarked.
He also speculated on future near-term moves in equities,
pondering over whether the recent trend of buying the dips would
entice dealers or if stocks would be stuck in a rut after
Thursday's carnage.
"One way or the other, it's hard to see any tangible good
news appearing to generate a sustainable rebound," he said.
Economic data for January had been fairly upbeat, but
analysts have since sharply cut their forecasts for economic
growth in China and the world, with BofA the most recent to
sound an alarm. News-driven moves saw ad firm WPP WPP.L skid almost 16%,
its biggest one-day loss in more than a quarter of a century,
after a disappointing fourth quarter. Housebuilders .FTNMX3720 endured their worst day in more
than two years, dragged by a 6.6% drop in Persimmon PSN.L
after it reported lower annual profit and said its Chief
Executive would step down. But drugmaker Hikma HIK.L outperformed, adding 4.4% after
it forecast sales growth in 2020.