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Stocks, Oil Prices Fall As New Covid Variant Wears Markets – Business Live |  Business

A stock price tip in Tokyo today Photo: Yoshio Tsunoda / AFLO / REX / Shutterstock

Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.

Financial markets have been rocked by the emergence of the worst variant of Covid-19 ever identified.

Stocks have fallen sharply in Asia-Pacific markets, the price of oil has fallen and European markets are also expected to open significantly lower.

The variant, called B.1.1.529, contains an “extremely high number” of mutations, which could help it evade the body’s immune response, scientists have said.

These mutations mean that its spike protein appears to be different from the version the vaccines were designed to target.

Last night, England imposed travel restrictions on six southern African countries, including South Africa, after data presented by South African scientists revealed that the variant also appears to be more transmissible and is already present in the provinces of the country.

South Africa, Namibia, Lesotho, Botswana, Eswatini and Zimbabwe have all been placed on England’s travel red list.

Two cases of B.1.1.529 have also been detected in Hong Kong.

The news triggered a sharp drop in the markets. Asia-Pacific stocks suffered their biggest losses since August, with MSCI Asian equity index excluding Japan down 2%.

from Japan Nikkei is down 2.5%, with travel stocks among the biggest slaughterers. Japan Airlines tumbled 6.5%.

that of Hong Kong Hang Seng The index fell 2.4% as fears that the B.1.1.529 variant could worsen the pandemic prompted investors to rush to the safety of bonds, the yen and the dollar.

IGSquawk
(@IGSquawk)

#ASX 7,279.3 -1.73%#NIKKEI 28 751.62 -2.53%#HSI 24 149.37 -2.39%#SHPARTAGES 8,602.43 -2.35%#HSTECH 6,173.35 -2.91%


November 26, 2021

Michael hewson, Chief Market Analyst at CMC Markets, claims that the emergence of B.1.1.529 triggered “a huge sell-off” in Asia-Pacific markets.


This variant, which is understood to contain up to 30 identified mutations, prompted WHO officials to call an emergency meeting to discuss what this means for the effectiveness of the vaccine as well as other treatments. . The new strain has also prompted the UK government to implement flight bans from six African countries over fears of what it could mean for infection rates and other ripple effects.

For now, it is understood that the number of cases is low, but due to low levels of liquidity in trading in Asia due to the US vacations, the reaction appears to be overwhelming, with a surge in bonds making dip yields and gold higher.

Brittany FTSE 100iThe blue-chip equity index is on track to fall around 2% at the opening, with losses seen across Europe.

Michael hewson
(@mhewson_CMC)

Opening calls
The FTSE100 should open 150 points lower at 7,160
DAX is expected to open 318 points lower at 15,600

No more woes likely for travel and leisure stocks this morning


November 26, 2021

IGSquawk
(@IGSquawk)

Concerns about the new markets for “South African” rattles –

European opening calls:#FTSE 7,190 -1.65%#DAX 15,648 -1.69%#CAC 6,961 -1.63%#AEX 792 -1.90%#MIB 26599 -1.85%#IBEX 8668 -1.96%#OMX 2299 -1.56%#SMI 12298 -1.22%#STOXX 4,210 -1.95%#IGOpeningCall


November 26, 2021

Agenda

  • 7.45 am GMT: French consumer confidence for November
  • 9am GMT: Italian consumer confidence for November

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