The Irish economy is heading into recession a senior economist has warned, as official measures designed to defeat the Covid-19 outbreak hits the jobs-rich industries of tourism, hospitality, and retail.

Irish business and trade union leaders said they stand ready to work with government in a national effort to face down the Covid-19 crisis, but warn that they need more help to prevent firms from going under.

European stock markets fell again amid investor scepticism that the spending pledges by governments around the world will shield the eurozone and the US from economic damage carried by Covid-19.

Panic over the Covid-19 fallout gripped global stock markets yesterday in the worst sell-off since the financial crisis a decade ago, while oil prices slumped in their worst drop since the Gulf War almost 30 years ago.

Irish tourism chiefs are on high alert over the summer season as question marks were raised for the first time about major global sporting events, including the Olympics -- if the coronavirus threat is not contained.

Global stock markets plunged again as investors signalled that the economic fallouts across the world of a severe coronavirus pandemic could be as bad as the global financial crisis.

Irish bank and transport shares most exposed to the potential economic fallout from the coronavirus fell sharply for a second successive session, as an Italian official said it may need to call on the EU to offer leeway on budget targets due to the outbreak.

The ECB’s growing confidence that the eurozone economy was on the mend may suffer a setback as the continent reels from the economic fallout of the coronavirus, a leading economist has said.

Bank of Ireland shares soared 8% and Irish property companies clawed back some of their sharp losses after the election as global markets climbed.

European shares inched higher, recovering from their worst week in nearly seven months, but jitters remained over the economic fallout from a virus outbreak in China.

Ryanair and Dalata Hotel Group were among the Irish shares caught up in a global shares sell-off as fears increased that the spread of the coronavirus would dampen world growth and tourism.

The Brexit gloom lifted helping boost the shares of Irish banks and property firms, as well as the owner of Paddy Power, as investors bet the risk of a crash-out Brexit had receded for the time being.

Sterling fell against the euro and the dollar as the political machinations in Westminster brought the likelihood of a general election much closer.

Stock markets on both sides of the Irish Sea are bracing for a week of high political drama at Westminster, which may decide whether Britain is set to crash out of the EU at the end of October.

Business group Isme is advising member companies in the frontline of a crash-out Brexit at Halloween to immediately prepare staff for potential redundancies.

The Brexit crisis could be cooled somewhat if the EU and UK were to immediately extend a transit or connectivity accord beyond its expiry date at the end of December, the head of the Irish hauliers business group has said.

Global markets appear to have called time on the dangerous game of hardball US president Donald Trump is playing with China, as a plunge in shares, government bond yields, and the price of oil signalled his trade wars could lead to world recession.

Brexit fears will cost the Government €1bn in lost tax revenues this year as Irish consumers rein in spending, according to a major survey.

Confirmation that Boris Johnson was heading to Downing Street was greeted by a fall in sterling — and a new round of warnings for Irish business to buckle up for a rough ride.

UK house prices and the number of sale transactions will fail to rebound “regardless of the Brexit outcome”, according to a leading economics group in London.

Global stockmarkets led by Asia joined in a relief rally after US president Donald Trump and China called a truce in their trade war.

European stock markets held up well even as the US-China trade spat remained unresolved, but sterling continued to reflect fears of a hard Brexit.

Global shares rose on the belief more central banks will be forced to cut interest rates to shelter the global economy from the trade wars, but crash-out Brexit fears weighed heavily on sterling.

The last gamble of Theresa May to win over MPs to support her Brexit deal appeared to unravel putting a question mark over her future and weighing on sterling.

Sterling steadied after initially posting further large losses on UK political fears but shares in Europe and the US were hit as the fallout of the US-China trade war extended to Chinese champion Huawei and the world’s chip makers for mobile phones.

Ireland will be the worst hit economy in the eurozone if the US-China trade spat broadens to envelop Europe, according to a leading economics group.

Irish and UK shares were mixed as the trade war between the US and China threatened to flare by the end of the week, barring a last-minute intervention by one of the combatants.

Shares in airlines, including Ryanair and Aer-Lingus-owner IAG, as well as travel giant TUI soared, as the threat of any disruption from Brexit was put off beyond the industry’s most profitable summer season.

Sterling slid against the euro as the request by Prime Minister Theresa May for a Brexit extension increased market tension over the latest drama in British politics.

A lifting of the Brexit gloom and the relief of Britain ruling out crashing out of the EU would likely spur Irish households to spend more on pricey consumer items, a leading economist has predicted.

Sterling fell slightly as Theresa May lost a vote for the third time for her EU withdrawal deal, which could bring a UK general election closer.

Sterling jumped on hopes that hardline Brexiteer Jacob Rees-Mogg would, after all, throw his weight behind Theresa May’s Brexit withdrawal deal.

The risk the UK will crash out of the EU at the end of next month has risen to “a significant 30%” but the most likely outcome is for a soft Brexit, according to a leading firm of economic forecasters.

Sterling recovered from its sell-off in the wake of the British parliament’s Brexit votes, as investors bet the UK government would still avoid exiting the EU without an agreed trade deal in place.

Irish shares tapped a surprise early new year buying wave that sent the Iseq Overall index climbing 3%, reflecting huge gains for Bank of Ireland and housebuilder Glenveagh at the end of a week marked by global stock market tremors.

The euro went lower as ECB head Mario Draghi shaved the growth outlook for the eurozone economy, which may signal that the first interest rate hike since the crisis may be delayed, market watchers said.

European shares played catch-up with the US by falling for a second day, suggesting the global rout for stock markets is far from over.

Sterling stumbled yesterday as UK transport minister Jo Johnson resigned, saying he wants a new Brexit referendum, and the DUP clashed with prime minister Theresa May over potential plans for the Border.

A long-feared rout of sky-high company valuations continued around the world, with Asian, European and US stock markets badly hit.