New variant of coronavirus puts markets in check: US futures and oil plummet

US markets, which were dormant on Thursday, took a heavy hit ahead of the start of the shortened session on Friday.

The Dow futures plummeted and oil fell 5% on Friday following the emergence of a new variant of covid-19 that shook global markets.

Asian stocks led the way. The index Hang Seng (HSI) de Hong Kong It fell 2.7%, while Japan’s Nikkei 225 (N225) was down 2.5%. European markets also sold strongly at the open, with major indices such as the FTSE 100, France’s CAC40 and Germany’s DAX, all down around 3%.

What we know so far about the new variant of coronavirus discovered in South Africa

The US markets, which were closed Thursday for Thanksgiving, took a heavy hit before the start of the shortened session on Friday. Dow (INDU) futures fell around 700 points, down 2%. S&P 500 (INX) and Nasdaq (COMP) futures fell 1.6% and 1%, respectively.

US crude plunged 5% to about $ 74 a barrel. The Brent crude, the world’s benchmark oil index, fell 4.3%.

The investors they were “scared” by the discovery of the new covid-19 variant in South Africa, Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, said in a research note on Friday.

New variant of coronavirus puts markets in check

The Minister of Health of South Africa He said Thursday that a new variant of the coronavirus appears to be spreading rapidly in some parts of the country.

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

EU countries take steps to impose travel bans on South Africa for the new variant

The UK Health Minister, Sajid JavidHe said that the variant “may be more transmissible” than the delta and that “the vaccines we currently have may be less effective.” The new variant has already prompted the UK government to ban flights from six African countries.

The travel and airline actions They are among those that fell the most on Friday.

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

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