Global markets: US and oil futures plunge on fears of new Covid variant

Asian stocks lead, with Hong Kong Hang Seng Index (HSI) down 2.7%, while that of Japan Nikkei 225 (N225) fell 2.5%. European markets also sold off sharply at the open, with major indexes including the FTSE 100, France’s CAC40 and Germany’s DAX all down around 3%.
US markets, closed on Thursday for Thanksgiving, were closed before the start of Friday’s shortened trading session. Dow (INDU) Futures fell about 700 points, or 2%. Futures contract for S&P 500 (INX) and Nasdaq (COMP) down 1.6% and 1% respectively.

US crude fell 5% to around $74 a barrel. Brent crude, the global oil benchmark, fell 4.3%.

Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, said investors were “panic” when they discovered the new Covid-19 variant in South Africa.

South Africa’s health minister said on Thursday that a new coronavirus variant appears to be spreading rapidly in parts of the country.

It has also been detected in Botswana, Hong Kong and Israel.

UK Health Secretary Sajid Javid, the variant “may be more transmissible” than the Delta strain and “the vaccine we currently have may be less effective.” The new tension has spurred UK Government ban flights from six African countries.

Travel and airline stocks were among the biggest losers on Friday.

“With the delta wave from earlier this year, investors are likely to shoot first and question later until more is known about it,” Halley said.

– Rob North contributed to this article.


Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button