UPDATE 2-London stocks log worst day since 1987 on ECB downer, Trump travel blow

* FTSE 100 hits lowest since 2012
* Two main indices log worst day since Oct. 1987
* Life insurers, miners, oil majors hit hardest

(Adds comments, updates to close)
By C Nivedita
March 12 (Reuters) - London's FTSE 100 index crashed to
levels not seen since the 2012 on Thursday after the European
Central Bank's stimulus package underwhelmed markets and added
to alarm caused by a U.S. curb on European travellers.
The blue-chip FTSE 100 .FTSE closed down 10.9%, while the
mid-cap index .FTMC fell 9.4%. Both indices logged their worst
day since October 1987.
U.S. President Donald Trump on Wednesday suspended travel
from Europe to the United States for 30 days to limit the spread
of the coronavirus.
Although the United Kingdom was spared from the travel
restrictions, fears were widespread over its impact on the
travel sector. The ECB approved fresh stimulus measures on Thursday to help
the bloc cope with the "major shock" of coronavirus but left
interest rates on hold, which hit sentiment further.
"Despite policy stimulus comments by both the U.S.
administration and other influential bodies such as the European
Central Bank, investors marked shares down aggressively as fears
that the current global disruption would inexorably spill over
into a period of recession or at least suppressed economic
growth," said Chris Bailey, European strategist for Raymond
James.
Shares of British Airways ICAG.L , EasyJet EZJ.L and WIZZ
Air WIZZ.L , which have already had to axe flights to and from
Italy, fell between 14.6% and 15.8%. Symbolic of the extent of economic damage from the outbreak,
cinema operator Cineworld CINE.L shed more than 24% as it said
that in the worst-case scenario, the outbreak could cast doubt
over its ability "to continue as a going concern." The FTSE index has shed about 32% since its January peak, as
the heavy blow from the pandemic rattled investors despite the
Bank of England's emergency 50 basis points interest rate cut
and the UK government's 30 billion-pound ($39 billion) stimulus
plan. Trump's travel ban brought the longest ever bull run in U.S.
stock market history to a screeching halt, pushing Wall Street's
main indexes into a bear market. .N
"Yes, we're now back at a level in 2012. Every sector across
the board - banking, consumer, travel, everything, the oil and
gas sector, which is a big industry on the FTSE, has been hit
extremely hard," said David Madden, market analyst at CMC
Markets.
"The sentiment is absolutely awful, to be honest."
The oil index .FTNMX0530 fell nearly 15% with oil majors
BP Plc BP.L and Royal Dutch Shell Plc RDSa.L slipping more
than 13%, as crude prices extended their slide. O/R
Shares of Carnival Plc CCL.L tumbled 17.7% after
subsidiary Princess Cruises, the operator of two ocean liners
quarantined because of numerous coronavirus cases, said it would
suspend voyages of all its 18 ships for two months. The suspension upends an industry already struggling with
cancellations following the outbreak.