Global shares are at risk of a new CoVID variant, with Dow futures losing 900 points and the South African rand at a one-year low.

Pfizer-BioNTech COVID vaccine.

  • Global equities fell on Friday after a new variant of CoVID-19 that could be more portable in South Africa.
  • The South African rand fell to a one-year low against the dollar, while safe havens such as gold and the Swiss franc rose.
  • The Dow Jones futures fell 900 points, suggesting a drop in early trading later in the holiday season.

Global shares fell on Friday after a new COVID-19 variety emerged, forcing investors to flee risky assets, push the South African rand to a one-year low, and lift gold and other safe havens. Sent later

In early European trading, the Dow Jones futures fell nearly 900 points to 2.5 percent, while the Nasdaq 100 fell 1.2 percent. The S&P 500 futures were down 2% at 3:35 am ET, suggesting a weak start to the day’s trading. US financial markets were closed on Thursday for Thanksgiving Day and will trade in a short session on Friday.

Scientists in South Africa said on Thursday that they had discovered a small number of new types of COVID-19 that could be more transferable.

According to Reuters, the scientists told reporters at a news conference that the mutations in the variety – called B.1.1.529 – have a “very unusual constellation” of mutations, meaning that the body’s immune response begins. May not be and vaccines may be less effective against it.

The UK responded by banning flights to six African countries. In recent weeks, Europe has been a source of concern as COVID-19 cases have increased, leading to lockdowns and sanctions in Austria, Italy and other countries. Earlier this week, the World Health Organization warned that the corona virus could claim another 700,000 victims by March.

With the alarm bells ringing over the impact on the economy from another highly contagious form, investors are flocking to safe haven assets. The Swiss franc jumped the most against the dollar in three months, rising 0.7 percent that day, while gold rose 1.2 percent to 1, 1,805 an ounce.

“A new and potentially dangerous type of COVID has created a wave of risk aversion in all markets,” said online broker IG Strategies in a daily note.

“Huge losses are expected in the index, although tech stocks have been the least affected, at least so far,” he added.

The South African rand plunged nearly 2% to its lowest level against the dollar in one year, while benchmark yields on 10-year South African government bonds rose 26 basis points to 9.99%, the highest since May 2020. Is. South African bonds are low. Liquid and more volatile than the US Treasury, but it was the biggest one-day increase since March this year.

Asian stocks rallied overnight, with Hong Kong’s Hang Seng down 2.8 percent, Tokyo’s Nikkei 2.5 percent and Shanghai Composite down 0.6 percent.

“At this stage very little is known. Changes are often less severe, so we should not go to any conclusions but there is clearly a great deal of concern,” said Jim Reid, a Deutsche Bank strategist. Said in the note.

“At this point, suffice it to say that no one in the markets has any idea where it will go,” he said.

European stocks were red in the first few minutes of trading, with the Stoxx 50 down 3.6%, the London FTSE 100 down 3.5% and the Frankfurt DAX down 3.9%.

Investor panic increased. Futures on the volatile VIX index rose about 13 percent.

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