World stocks sink after South Africa discovers viral variants.

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Beijing – Global stock and oil prices fell on Friday after South Africa discovered a rapidly prevalent variant of the coronavirus and the European Union proposed to stop air travel from South Africa.

The London benchmark fell with an unusually wide margin of 3.3% at the opening and Tokyo lost 2.5%. Shanghai, Frankfurt and Hong Kong also decreased. Wall Street futures have fallen.

Some European countries have already stepped up antivirus control this week after their cases surged. Austria imposed a 10-day blockade, while Italy restricted activities by unvaccinated people. Americans have been advised by their government to avoid Germany and Denmark.

The EU of 27 countries has proposed to the governments of member states to suspend travel after stating that South Africa is the most populous state in which this variant is endemic. The UK has banned flights from South Africa and five neighboring countries.

“Investors are more likely to shoot first and ask questions later,” Oanda’s Jeffrey Halley said in a report.

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In early trading, London’s FTSE fell to 7,067.17 and Frankfurt’s DAX fell 3.3% to 15,391.00. CAC in Paris plummeted 4% to 6,789.13.

On Wall Street, the future of the Benchmark S & P 500 fell 1.6%. The average of 30 Dow Jones Industrial Averages was 2% off.

In Asia, the Shanghai Composite Index fell 0.6% to 3,564.09 and the Nikkei 225 in Tokyo fell to 28,751.62. The Hang Seng Index in Hong Kong fell 2.7% to 24,080.52.

The Kospi in Seoul was down 1.5% to 2,936.44 and the S & P-ASX 200 in Sydney was down 1.7% to 7,279.30.

India’s Sensex fell 2.2% to 57,499.50. Markets in New Zealand and Southeast Asia have also declined.

Wall Street’s Benchmark S & P 500 rose 0.2% on Wednesday. The US market was closed on Thursday due to a holiday and was scheduled to reopen on Friday to shorten trading sessions.

Investors were already more cautious after predicting the possibility of responding to rising inflation by raising interest rates faster than previously planned in a memorandum of the October meeting released by the Federal Reserve this week. ..

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Investors are worried that central bankers may feel pressure to withdraw the stimulus earlier than planned due to stronger-than-expected inflation. The Federal Reserve said earlier that it had foreseen to keep interest rates low until late next year.

Financial markets have been boosted by strong US corporate earnings, and there are signs that the global economy is recovering from last year’s historic decline in pandemics. Stock prices were boosted by simple credit and other measures developed by the Fed and other central banks.

In the energy market, benchmark US crude fell $ 4.52 per barrel to $ 73.87 in electronic trading on the New York Mercantile Exchange. Brent crude, the international oil price standard, fell from $ 3.65 to $ 77.27 per barrel in London.

The dollar fell from 115.36 yen on Thursday to 114.39 yen. The euro rose from $ 1.1221 to $ 1.1243.

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World stocks sink after South Africa discovers viral variants

Source link World stocks sink after South Africa discovers viral variants

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