New Covid variant hits global markets with 5% oil sinking



Registered nurse Savannah Wagstaff watches as Aliza Burns, a nursing student at Brigham Young University-Idaho, is a coronavirus disease (COVID-19) positive in her isolation room at Madison Memorial Hospital in Rexburg, Idaho, US, October 28, 2021 Treats the patient.

Shannon Stapleton | Reuters



Global markets went into a tailspin on Friday after news of one The heavily-mutated Covid-19 variant First found in South Africa.

The World Health Organization will meet on Friday to address the emergence of version B.1.1.1.529, which South African scientists say has more than 30 mutations in the spike protein, the component of the virus that binds to cells. This is significantly higher than the now-dominant Delta version, which is itself highly contagious.



Health officials have stated that many of these mutations are associated with increased antibody resistance and may affect the behavior of the variant with respect to vaccines, therapies and transmissibility, although the WHO has stated that it is not necessary to better understand its effects. Further investigation is required.

pan-european stockx 600 Banks and travel stocks fell 2.6% in early European trade, as well as oil prices in the oil and gas sector.



international benchmark crude oil Europe was down 5.3% at $77.84 a barrel during morning trading, while US crude fell more than 6.5% to $73.31.

Stateside, US stock futures point to an early loss of nearly 800 points Dow Jones Industrial AverageWhile the markets of Asia-Pacific recorded a sharp decline in the markets of Hong Kong overnight. Hang Seng Index and japan Nikkei 225 More than 2.5% each shedding.

The variant has been detected in a South African traveler at a Hong Kong quarantine hotel, one person has also reportedly been affected throughout the hall and the remaining passengers have been quarantined.

The UK government banned flights from South Africa and Botswana, where there have been cases of the new version, as well as Eswatini, Lesotho, Namibia and Zimbabwe, from noon on Friday to 4am on Sunday. From then onwards, a mandatory 10-day quarantine period will be imposed on travelers from those countries.

Some analysts have suggested that lower trading volumes due to the US Thanksgiving holiday could add to the harshness of market movements. US markets were closed on Thursday and will remain open until noon on Friday.

more cautious central bank

Geoffrey Yu, senior market strategist at BNY Mellon, told CNBC’s “Squawk Box Europe” on Friday that some corners of the market may believe that news of this new version will give the Federal Reserve reason to pause on monetary policy normalization, however. He does not necessarily agree with that view.

u said that Recent resurgence of Covid cases in Europe, even before news of this latest edition came out, it was shown that “we are still going to have to deal with this for some time, and there will be periods of risk aversion that will hit the markets due to concerns over the pandemic.”

Emmanuel Cow, head of European equities strategy at Barclays, said with many major stock markets at or near all-time highs, a pullback seems “logical”.

“We have advised for greater barbell sector allocation and downside hedges at these levels, but we believe resilient growth and patient central banks should continue to provide cushion over the medium-term horizon while investors hold dips. There’s dry powder to buy,” Kau said. One email Friday.

“What is important is to find out whether existing vaccines are effective against variants. The uncertainty of COVID may force central banks to exercise caution.”

,

Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *