UPDATE 1-UK shares slide as central bank moves fail to quell virus fears

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* FTSE 100 down 7.5%, FTSE 250 down 10.4%
* UK stocks hit lowest level since Oct 2011
* More pain for airlines as virus hits travel
* Aston Martin slides after boosting capital raise plan

(Adds comment, updates prices)
By Devik Jain and Sruthi Shankar
March 16 (Reuters) - UK shares mirrored steep declines in
global stock markets on Monday, as coordinated stimulus actions
by central banks across the world failed to calm panic-stricken
investors who feared deeper economic damage from the coronavirus
pandemic.
London's blue-chip FTSE 100 index .FTSE dropped 7.5% to
its lowest since October 2011, adding to a 17% slide last week,
while the broader European STOXX 600 index .STOXX was down
8.4%.
A volatility gauge for eurozone stocks .V2TX , commonly
known as the fear gauge, jumped to an all-time high of 87.90
points.
Britain's airline stocks took the biggest hit as the
government looked set to discuss how to help the sector after
major airlines including Virgin Atlantic and easyJet EZJ.L
said the state would need to step in to prevent a collapse.
ICAG ICAG.L , the owner of British Airways, slid 24% after
saying it would cut its flying capacity by at least 75% in April
and May. Share of EasyJet and TUI AG TUIT.L slumped 26% and
30%, respectively. London's travel and leisure index .FTNMX5750 is down for
the ninth consecutive session, on course for its worst such
losing streak on record
In a bid to improve liquidity and ease strains on global
funding markets, the U.S Federal Reserve slashed its interest
rates to near zero on Sunday, while its peers in New Zealand,
Australia and Japan unveiled their own measures.
"The weight of this virus problem is so great that it's
greater than any central bank medicine," said Keith Temperton,
trader at Tavira Securities.
"What we really need is some sign that things can't repeat.
Once we even get close to peaking, the markets will rally hard.
But until then, we just see selling."
As of Sunday, the number of deaths of Britons with
coronavirus jumped by 14 to 35, while the total diagnosed rose
by 20% to 1,372, health authorities said. Adding to slowdown fears, a survey showed manufacturing in
Britain weakened sharply in early 2020 even before concerns
about the coronavirus crisis escalated, adding urgency to the
need for a trade deal with the European Union. Feeling the heat from lower rates, shares in major lenders
including Barclays BARC.L , Royal Bank of Scotland RBS.L and
Lloyds Banking Group LLOY.L fell between 10% and 14%.
Among other virus casualties, luxury carmaker Aston Martin
AML.L tumbled 30.5% to an all-time low after it said it was
increasing a 500-million pound ($617 million) capital-raising
plan by 36 million pounds. Retail chain Primark's owner, Associated British Foods
ABF.L , said it had shut 20% of its store space and would not
provide a full-year forecast due to the impact of the pandemic.