Global markets: US futures and oil plunge amid fears of a new type of Covid virus

Asian stocks led the way, with Hong Kong Hang Seng Index (HSI) It decreased by 2.7%, while Japan Nikkei 225 (N225) It decreased by 2.5%. European markets saw heavy selling at the open as well, with major indices including the FTSE 100, France’s CAC40 and Germany’s DAX down around 3%.
US markets, which were closed Thursday for Thanksgiving, fell ahead of the start of the shortened trading session on Friday. daw (UNDUE) Futures were down nearly 700 points, down 2%. futures contracts for Standard & Poor’s 500 (INX) And Nasdaq (COMP) They decreased 1.6% and 1%, respectively.

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

Jeffrey Haley, chief market analyst for Asia Pacific at Oanda, said in a research note on Friday that investors were “scared” by the discovery of the new Covid-19 variant in South Africa.

The South African Minister of Health said, on Thursday, that a new type of Corona virus is spreading rapidly in parts of the country.

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

British Health Minister Sajid Javid, a replacement “may be more transmissible” than the Delta strain and that “the vaccines we currently have may be less effective”. You have already paid off the new dynasty UK government To ban flights from six African countries.

Airlines and travel stocks were among the biggest decliners on Friday.

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

Rob North contributed to this article.


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