Other Live Markets COVID-19 on Friday and That Feeling in March 2020

  • New changing concerns hit global markets
  • Europe’s biggest jump in volatility since February 2020
  • European banks have fallen more than 5% at some point
  • Stoxx 600 makes up for some losses, now down 2.4%

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Latest COVID-19 Friday and In March 2020 feeling (1015 GMT)

Last Friday was a particularly exciting day in the markets as the Austrian shutdown sent EUR, Eurozone yields and banking stocks down sharply.

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The market’s concern today about the new alternative is much worse.

The volatility meter for European stocks made their highest jump since February 2020 and the COVID-19 market crash as you can see below:


European banks have always been the end game in the face of the pandemic crisis and what the sector stocks have to say today is very ugly.

This is the index’s worst drop since September 2020, and as you can see below, declines of more than 5% are clearly related to the worst of COVID-19 that sparked market turmoil in 2020:


As we noted earlier in a previous blog post, some travel stocks are back at levels not seen since last year, but in the grand scheme of things, the STOXX 600 is only about 5% off record highs and 75% above March 2020 lows.

Whether today was just another bump in the road or the beginning of something much uglier remains to be seen.

(Julian Ponthos)


Some travel stocks back to their lowest levels in November 2020 (0908 GMT)

The new virus variant is raising fears across all financial markets, sending European stocks lower, with pandemic-sensitive stocks incurring losses.

Stoxx 600 . Index (.stoxx) The travel and leisure stock index fell 2.9% (.sxtp) It fell 4.6% to its lowest level in September.

Some shares in travel companies such as British Airways IAG (ICAG.L), Lufthansa (LHAG.DE), Tui, reached its lowest levels near levels not seen since November 9, 2020, when the vaccine breakthrough was announced.

Oil and Gas Inventory Index (.sxep) It fell 4.7% as crude oil prices fell amid concerns about the pandemic and oil surplus.

Banks were hit hard with lower bond yields while markets slashed expectations about the pace of potential interest rate increases in the US. Bank Stoxx . Index (.SX7P) It fell 4.9%.

Analysts from Raymond James wonder if this could be another “Covid panic”, but they also remember that British and Israeli authorities are taking the news seriously enough to ban flights from the region, starting today.

They add that risky assets were already jittery in response to rising inflation pressures and some hawkish comments from central banks.


(Stefano Ribaudo)


Looks like Black Friday (0833 GMT)

COVID-19, a concern that has pushed investors down the list of their main concerns in recent months, is back in the top spot as a new variable spreads across South Africa.

Asian stocks outside Japan fell more than 2%, stock futures in Europe and the United States fell sharply, oil prices fell nearly 3.5%, the safe-haven yen rose about three-quarters of a percentage, and US Treasury yields fell by about 10 basis points.

Weak liquidity after the US Thanksgiving holiday on Thursday could certainly exacerbate price action, but there is little doubt that overnight headlines surprised the markets on Friday.

Little is known about the variant, which was discovered in South Africa, Botswana and Hong Kong, but scientists believe it contains an unusual mix of mutations and may be able to evade immune responses or make it more transmissible. Read more

The news comes as Europe is already battling the COVID-19 outbreak, which has resulted in new restrictions adding to uncertainty over the near-term economic outlook.

This poses a new challenge for central banks such as the European Central Bank, which is just beginning to acknowledge that the inflation push is lasting longer than expected.

On top of the latest COVID news headlines, there are other reasons for concern, some of which are warning – the general rise in Fed rate hike expectations, Ukraine/Russia tensions with broader geopolitical ramifications and a real estate-led slowdown in China.

In emerging markets, the spotlight is shifting from Turkey to South Africa at the moment as the rand breaches the 16.00 level per dollar for the first time this year.

Key developments that should provide further guidance to the markets on Friday:

ECB Speakers: European Central Bank President Christine Lagarde

– Bank of England Chief Economist Hugh Bell speaking

– Q4 Canadian Survey on Working Conditions

/ Japanese Prime Minister Kishida urges companies to raise wages by 3% or more Read more

Government takeover of China’s Evergrande Football Stadium Read more

China asks Didi to remove her name from the US over data security concerns – Bloomberg News Read more

New Covid variables disturb the markets

(Dara Ranasinghe)


New virus hits European stocks (0721 GMT)

European stocks are set to open sharply lower with a rush to safety and a massive drop in risky assets scattered around the world on further virus fears. Stock futures expect a drop of more than 2% when trade opens. Read more

South African scientists have discovered a variant of COVID-19 with a “very unusual constellation” of mutations, which can help it evade the body’s immune response and make vaccines less effective. Read more

US Treasury yields fell by 9 basis points, and Fed fund futures rose as markets scaled back expectations about the pace of potential US interest rate hikes.

Meanwhile, Brent crude futures are dropping below $80 a barrel, amid concerns about the pandemic and excess oil.

(Stefano Ribaudo)


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