Italy the new coronavirus red zone, global markets plunge, Wall St ends down 3.56pc

Global markets have plunged on fears the the coronavirus has spread beyond China into South Korea and northern Italy. 

On Wall Street, the Dow Jones Industrial Average lost all of the years gains ending down more than 1,000 points or 3.65 percent. 

The risk posed to Europe is now ringing alarm bells for investors with villages locked down north of Milan, raising the prospect of border controls across the continent. 

ABC's Peter Ryan analyses the latest chapter in coronavirus contagion.