Stocks drop, havens surge as new COVID-19 variable scares investors By Reuters


© Reuters. FILE PHOTO: Bystanders wearing protective masks appear on an electronic board showing stock prices outside a brokerage amid the outbreak of the coronavirus disease (COVID-19), in Tokyo, Japan, September 29, 2021. REUTERS/Issa Kato

Written by Tom Westbrook

SYDNEY (Reuters) – Stocks fell on Friday and were headed for their biggest weekly drop in nearly two months, while safe-haven assets such as bonds and the yen rose as concerns about future growth intensified and US interest rates rose.

An alternative, discovered by scientists in South Africa, may be able to evade immune responses and prompt Britain to expedite the imposition of travel restrictions on South Africa.

It fell 1% in early trade, as were futures contracts. The risk-sensitive Australian and New Zealand dollars fell 0.4% to their lowest level in three months.

“The trigger was the news about this COVID variant… and the uncertainty about what this means,” said Ray Atrell, head of FX strategy at National Australia Bank (OTC 🙂 in Sydney. “You shoot first and ask questions later when this news breaks.”

It was down 1.7% in early trade and Australian shares fell 0.6%. [.T][.AX]

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2% for a weekly decline of 1% and global stocks, while still near record highs, were heading for a weekly decline of 0.7%, the largest since early October.

Little is known about the new variant. But the scientists told reporters it had a “very unusual constellation” of mutations, as it might help it evade the body’s immune response and make it more transmissible.

British authorities believe it is the most important alternative to date and fear it may resist vaccinations.

Moves in Treasuries were sharp at the opening in Tokyo – after the Thanksgiving holiday – as yields quickly eased some of the week’s gains. The benchmark 10-year bond yield fell 5 basis points to 1.5927%.

The yen jumped about 0.4 percent to 114.91 per dollar, and gold rose 0.2 percent to $ 1792 an ounce. [FRX/][GOL/]

These moves come against the backdrop of concern about the outbreak of the Corona virus, COVID-19, which has led to restrictions on movement and activity in Europe, and with higher prices in markets next year in the United States.

Disclaimer: Fusion Media I would like to remind you that the data on this website is not necessarily current or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges but by market makers, and therefore prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for trading purposes. Therefore Fusion Media assumes no responsibility for any business losses you may incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media shall have no liability for loss or damage as a result of reliance on the information including statements, quotes, charts and buy/sell signals included on this website. Please be fully aware of the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment.

Write a Comment

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