HomeNewsMarkets are in turmoil as the new Corona virus restrictions

Markets are in turmoil as the new Corona virus restrictions

Due to corona’s travel restrictions, Stocks and oil futures fell, while investors sought protection in government bonds.

[Stock Market] Stocks and oil futures fell:

Stocks fell worldwide and oil prices plummeted on Friday, triggering another round of travel bans in South Africa following a variety of evidence of a new corona virus and the economic damage caused by epidemics. Concerns re-emerged.

The S&P 500 implemented its worst day since February as a growing list of nations, including the United States, banned travel from half a dozen or more African countries. The uncertainty shook the stock market, which was performing well, and market observers said the rising volatility could continue as countries anticipated a variety of risks.

The number of mutations in this new strain has raised concerns that it could be particularly contagious and make existing vaccines less effective. But scientists have not yet reached a conclusion.

“Where the market is selling so dramatically, ‘Yes, that’s bad news’, but also the fact that we’ve been running quite a bit for some time with relatively low volatility,” said Ganesh. A Strategy in UBS Global Wealth Management. “It’s really early to decide what it’s going to do differently.”

The S&P 500 closed down 2.3 percent and the Nasdaq Composite Index fell 2.2 percent. European stock markets fell 3 to 5 percent.

US Stock Market:

US stock markets were closed on Thursday for the Thanksgiving holiday and closed early on Friday. Holidays that are full of complexity are neither fun nor comfortable.

Friday’s decline pushed the benchmark S&P 500 below last week’s highs. Amid supply chain disruptions and a shortage of goods and workers in some sectors, investors are expecting rising prices and the withdrawal of stimulus from central banks to tackle inflation.

But the emergence of a new form suddenly turned their attention to the root causes of epidemics. The fourth wave of the virus in Europe has already led to the tightening of sanctions, including some lockdowns.

“The epidemic and the variety of coyotes are one of the biggest threats to markets, and will likely continue to inject volatility,” Keith Lerner, a strategy expert at the trust, wrote in a note to clients.

Mr Lerner said modest sales were not unexpected given the heights of the stock trading. “We are not making any changes to our investment guidelines at this time,” he wrote, adding that consumers and companies are now more adept at dealing with virus restrictions.

West Texas Intermediate Oil futures, the US crude benchmark, fell more than 13 percent to 68 68.04 a barrel, the lowest level since early September. The price of oil has been particularly sensitive to the virus that keeps people at home. The decline comes just three days after the United States and five other countries announced coordinated efforts to use their national oil reserves to reduce rising gas prices.

Brent futures, the European benchmark, fell 11 percent to about ً 73 a barrel. But Mr Ganesh said UBS had predicted that the price would rise to $ 90 a barrel by March, partly in the hope that concerns about new virus restrictions would be temporary.

Demand for relative protection of government bonds increased, leading to higher prices and lower yields. Yields on the 10-year US Treasury fell 15 basis points, or 0.15 percentage points, to 1.48%, the largest single-day decline since March 2020. Germany’s benchmark, European benchmark bond yield fell 9 basis points to minus 0.34. Percent.

In response to last year’s market fluctuations, stocks growing under lockdown and quarantine increased, including Zoom and Piloton. Companies affected by travel bans, such as Carnival, Cruise Company, and Boeing, an aircraft manufacturer, fell.

Asia’s Drop:

In Asia, the Nikkei fell 225.5% in Japan and the Hang Seng Index fell 2.7% in Hong Kong.

Europ’s Drop:

In Europe, energy reserves took markets down. The Stokes Europe 600 index closed down 3.7 percent. The FTSE 100 in the UK fell 3.6 percent, while stock indexes in France and Spain fell nearly 5 percent.

Other countries:

As several countries, including Britain and France, arrived to restrict flights from South Africa and seven other African countries, airline stocks declined. IAG, the parent company of British Airways, fell nearly 15%, the biggest drop in the FTSE 100.

“This latest drop in confidence is the latest blow to the industry, given that it is already facing a lockdown in Europe,” wrote Susanna Strater, an analyst at Hargreaves Lensdown. “It will take much longer than a discounted ticket to calm the nerves and restore optimism.”

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