Meanwhile, individual stocks also showed signs that investors are betting on another lockdown. The British Airways owner IAG and plane engine maker Rolls Royce were the top blue-chip victims, dropping 14.9pc and 11.6pc respectively, while the hotel company Whitbread lost 9pc.

Retail banks such as Natwest and Lloyds were stung by sharp falls because their performance suffers when the economy struggles. Ryanair and Easyjet both clocked up falls of more than 10pc.

The biggest of the few FTSE 100 risers was Ocado, which climbed 4.6pc because its online grocery systems are in higher demand if shops and restaurants are shut.

In the US, the vaccine makers Moderna and Pfizer jumped more than 20pc and more than 6pc respectively as they will benefit if a new generation of jabs is needed. The previous lockdown favourite Zoom spiked 6.8pc, and Netflix also rose.

British business leaders said fresh restrictions would be a catastrophe and warned that the new variant risked destroying consumer confidence following a growing rebound.

Michael Kill, of the Night Time Industries Association, said a third of nightclubs may shut permanently if they are forced to close their doors again.

He said: “We are talking [about a] major catastrophe in terms of our sector as a whole. We’re talking about pretty much a collapse.”

Kate Nicholls from UK Hospitality said the timing “could not be worse” ahead of the crucial Christmas period.