The effects of fears about the new Covid variant reported in South Africa – to block which the European Union, Great Britain and Israel have already decided to stop flights from that region – are affecting the markets.
There are also repercussions in the Old Continent, already under pressure due to the fourth wave and further stressed by fears for the new variant. Opening down for European stock exchanges. Piazza Affari opens with a heavy drop, the Ftse Mib drops 3% to 26,293 points. Stock market peaking early in the session. The Ftse Mib index marks -3.38% to 26,184 points, a decline higher than the other markets. On the discount list of 5.4% for Banco Bpm, 4.5% for Leonardo, 4.6% for Intesa. Already oil with Eni -4.8%, Tenaris -5.5%. Tim -2.1% on the day of the extraordinary board of directors. At his debut, Ariston opens with -0.5% on the placement price. In Piazza Affari the only Diasorin counter-trend stock, which leaps by 5%.
In Europe, the stoxx 600 area index fell 3.1%. In red, Paris (-3.4%), Frankfurt (-3.1%), Madrid (-3.2%), London (-2.9%) and Milan (-3.7%). The drop in energy weighs on the lists (-5.5%), with oil suffering a new sharp decline and in fact returning to the levels of last July, eliminating the autumn rally. In Texas, the WTI dropped to 74.56 dollars, to then settle around 75.03 dollars (-4.26%). Brent also fell, leaving over 3.8% on the field at 79 dollars a barrel. The price of gas is down. In Amsterdam the price drops by 2.5% to 90.87 euros per Mwh. On the commodities front, gold rose at 1,804 dollars an ounce. In the Old Continent also banks (-4.5%) and cars (-4%) are down. On the currency side, the euro against the dollar continues to rise slightly to 1.1273 in London.
Asian markets sink and oil prices slide while stable assets rise. Investors fear that the new variant, which could be more contagious than the Delta and more vaccine resistant, could deal a severe blow to the global recovery. Closing down for the Asian stock exchanges. Closing down sharply for Tokyo (-2.5%). On the currency market, the yen appreciates against the dollar at 114.50, and against the euro at 128.50. While trading is still underway, Hong Kong (-2.3%), Shanghai (-0.5%), Shenzhen (-0.2%), Seoul (-1.5%) and Mumbai (-2%) are in the red. 2%). Shortly after 5 am, Italian time, in Tokyo, the Nikkei 225 index lost 3% to 28.607.98 points. In Hong Kong, the Hang Seng index was down 2.1% to 24,213.55, the Shanghai 0.5% to 3,566.18. Inflation trends and the next moves by central banks also remain in the spotlight. Spotlights on commodity prices and the impact on economic recovery.
Two cases with the new variant have already been detected today in Hong Kong. Headlines are also circulating this morning about tightening restrictions for the virus in parts of China – commented Jeffrey Halley, market analyst at Oanda in Asia Pacific – markets are not taking risks, stocks are falling, safe haven currencies such as the US dollar, Japanese yen and Swiss franc are recovering.
On Wall Street
Strong decline on Wall Street. Today the American markets, closed yesterday for Thanksgiving, will reopen but at reduced hours for the weekend.
Oil and gold in Asia
With fears of the Covid-19 variant sweeping the financial markets today, safe haven currencies outperformed at the expense of emerging and commodity / risk currencies. Oil prices have eased in Asia as the South African variant ignites growth fears, sending a wave of sell-offs through Asian energy markets. Even though gas and coal prices are stable, oil prices have plummeted. Brent crude fell 1.85% to $ 80.70 a barrel, and WTI fell 2.0% to $ 76.40 a barrel.
The World Health Organization (WHO-WHO) has today called an extraordinary meeting. Holland and Belgium should decide today new restrictive measures designed to contain the contagion. The UK has banned travel from six South African countries by blocking flights from South Africa, Namibia, Zimbabwe, Botswana, Lesotho and Eswatini. The new variant, characterized by the abbreviation B.1.1.529, contains 32 variations of the spike protein. These announcements come as several European countries, including France and Portugal among the latter, are stepping up their measures to fight Covid-19 due to a surge in the outbreak on the continent. A context that feeds fears of a possible slowdown in economic growth in the face of rising inflation. Israel will also ban flights from 7 African countries due to the emergence of the new South African variant. This was announced by Prime Minister Naftali Bennett quoted by local media, specifying that the ban concerns South Africa, Lesotho, Botswana, Zimbabwe, Mozambique, Namibia and Eswatini, the same also banned by Great Britain but with the addition of Mozambique.
New Covid variant and rules: all updates
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