Black Friday for Stock Exchanges, New South African Variant Scare By

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By Alessandro Albano – Black Friday in all senses on equity markets on concerns over new Covid-19 variant discovered in South Africa B.1.1.529 which, for many observers, could lead to new restrictions as evidenced by falls in sector stocks travel & leisure.

There are still few details on the new strain, but Il collapses to 3.9% on the 26,000 points threshold, the loses 3.6%, the marks -4.5%, while it slips to -4.1% . US futures are also heavy, with indicated at -2.3% and strong sales on Asian markets: -2.5%, -2.6% and -0.6%.

Operators’ fright is shifting portfolios to government bonds, with Treasuries down 7.4%, down 25%, and 10-year BTPs down 6.7% to 0.992%. Slight increases on the other hand, + 1.1% to $ 1,804 dollars per ounce.

Among the titles, the only one that is being saved in Piazza Affari is Telecom Italia (MI 🙂 on the day of the extraordinary board of directors that could see the resignation of CEO Gubitosi. Furthermore, according to rumors, the Kkr fund could join the CVC private equity fund to strengthen its offer on the former state monopolist, after the majority shareholder Vivendi (PA 🙂 rejected the initial price of € 0.505 per share.

The travel sector stocks suffer the most, after the United Kingdom has already blocked flights from South Africa and reinserted the state on the “red list”. International Consolidated Airlines (LON 🙂 collapses by -11%, Ryanair (LON 🙂 loses 8% while Deutsche Lufthansa (DE 🙂 trades at -12%.

Oil stocks also collapsed after e prices fell by 5.8% and 4.7% respectively. Eni (MI 🙂 lost 5%, Royal Dutch Shell (AS 🙂 lost 5.5%, while Exxon Mobil (DE 🙂 dropped to 4.3%.

Despite little information on the B.1.1.529 strain, the president of the European Commission, Ursula von der Leyen, has already said that she will propose the blocking of flights from southern Africa, while Minister Speranza has signed an ordinance denying the entry into Italy “to travelers who in the last 14 days have been in South Africa, Lesotho, Botswana, Zimbabwe, Mozambique, Namibia, Eswatini”.

“Equities will come under severe selling pressure with investors frightened by the emergence of a heavily mutated variant of Covid-19 in South Africa, lovingly called B.1.1.529,” Oanda analysts wrote in a statement.

“The UK has suspended flights from South Africa and five other neighboring countries, and we can expect similar things elsewhere with the emergence of the delta in India which has been a hard learned lesson. Two have already been detected in Hong Kong today. cases with the new variant. Headlines are also circulating this morning about the tightening of virus restrictions in some parts of China, “the London broker said.

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James Reno

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