Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Equities, oil prices, U.S. Treasury yields all drop on COVID variant fears

Economy3 hours ago (Nov 26, 2021 08:26PM ET)
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Passersby wearing protective masks are reflected on an electronic board displaying stock prices outside a brokerage amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, September 29, 2021. REUTERS/Issei Kato 2/2

By Chris Prentice and Carolyn Cohn

WASHINGTON/LONDON (Reuters) - Shares tumbled on Wall Street on Friday as they reopened after Thanksgiving, while European stocks saw their biggest sell-off in 17 months and oil prices plunged by $10 per barrel as fears over a new coronavirus variant sent investors scurrying to safe-haven assets.

The World Health Organization (WHO) on Friday designated a new COVID-19 variant detected in South Africa with a large number of mutations as being "of concern," the fifth variant to be given the designation.

Unofficially, the Dow Jones Industrial Average closed down 2.53% at 34,899.34 in its largest percentage drop in more than a year. The S&P 500 lost 2.27%, its worst one-day drop since Feb. 25, and the Nasdaq Composite dropped 2.23%, the biggest one-day route in two months.

U.S. markets closed early on Friday after being shut all day on Thursday for the Thanksgiving holiday.

The benchmark STOXX 600 index ended 3.7% lower on the day, leaving it down 4.5% for the week. The volatility gauge for the main stock market hit its highest in nearly 10 months.

Companies that had benefited from an easing of COVID-related restrictions this year, including AMC Entertainment (NYSE:AMC), plane engine maker Rolls Royce (LON:RR), easyJet (LON:EZJ), United Airlines and Carnival (NYSE:CUK) Corp all fell.

Retailers dropped as Black Friday, the start of the holiday shopping season, kicked off as the new variant fuelled concerns about low store traffic and inventory issues.

In Europe, the travel and leisure index plummeted 8.8% in its worst day since the COVID-19 shock sell-off in March 2020.

"Bottom line is this is showing that COVID is still the investor narrative, a lot of today’s movement is driven by the South African variant," said Greg Bassuk, chief executive officer of AXS Investments in Port Chester, New York.

"We have been talking about four or five factors that have been driving the last couple of months' activity – inflation fears, some economic data, Fed policy – but what we have seen over the last year is that big developments with respect to COVID really have ended up eclipsing some of those other factors by a substantial degree and that is what is driving today’s market activity."

Little is known of the variant detected in South Africa, Botswana and Hong Kong, but scientists said it has an unusual combination of mutations and may be able to evade immune responses or make the virus more transmissible.

Britain said the new variant was the most significant variant to date and was one of several countries to impose travel restrictions on southern Africa.

The European Commission also said it wanted to consider suspending travel from countries where the new variant has been identified, though the WHO cautioned against hastily imposing such restrictions.

Global shares fell 1.81%, their biggest down day in more than a year. France's CAC 40 shed 4.8%. The UK's FTSE 100 dropped 3.6%, while Germany's DAX fell 4.2% and Spain's IBEX lost 5.0%.

Malaysian rubber glove maker Supermax, which soared 1500% during the first wave of the pandemic, leapt 15%.

MSCI's index of Asian shares outside Japan dropped 2.44%, its sharpest fall since late July.

In commodities, oil prices plunged. Gold prices reversed earlier gains seen amid the move away from riskier assets.

U.S. crude was last down 12%, at $69.02 per barrel by 1:21 p.m. EST (1812 GMT). Brent crude dropped 10.5% to $73.59.

Spot gold prices were down 0.09%.

As investors dashed for safe-haven assets, the Japanese yen strengthened 1.87% versus the greenback, while sterling was last trading at $1.3331, up 0.08% on the day.

The dollar index fell 0.757%, with the euro up 1% to $1.1318.

U.S. Treasury debt yields posted their sharpest drop since the pandemic began. Treasuries benchmark 10-year notes last rose to yield 1.4867%. The 2-year note last rose to yield 0.4941%, from 0.644%. [US/]

"A flight to safety is underway with the 10-year U.S. Treasury yield down," said Keith Lerner, co-chief investment officer at Truist Advisory Services. "The proximate cause of the sell-off is yesterday’s announcement of a new COVID-19 variant in South Africa, which investors fear could weigh on economic growth."

The market swings come against a backdrop of already growing concern about COVID-19 outbreaks driving restrictions on movement and activity in Europe and beyond.

Markets had previously been upbeat about the strength of economic recovery, despite growing inflation fears.

Equities, oil prices, U.S. Treasury yields all drop on COVID variant fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (91)
S S Shet
pingo_0070 16 minutes ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
simple advise for sane people on the forum ... there r only three possibilities..1. this strain is not lethal , so There won't be COVID in 6 mth, so markets will fully recover , so don't worry ..2. this strain is lethal , so don't worry of money, bcoz u won't be there 3. both covid and u live together, so nothing to worry ..simple ... so stay invested ..
S S Shet
pingo_0070 26 minutes ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market can not crash for the same reason twice ...yes .. it can react momentarily...find some other reason other than Covid( factored in ), FED taper ( factored in ) , interest rate hike( factored in ) ... rate of fed taper is something which can give surprise.. but new varient and possible curbs will only lead to slow tapering .. hence only two people should sell now .. first those sitting on huge profits should book profit and second thosr who are Fools ..
Sanjay Motwani
Sanjay Motwani 39 minutes ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don’t we still know about patients infected by new variant. I am eager to know how they’re doing. That could best way for layman to know if new variant is lethal.
Khurshid Paray
Khurshid Paray 2 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
But ultimately stocks will rise againhence don't feel panic.Instead add quality stocks to your portfolio but in staggered manner
Tyshaun Hamilton
Tyshaun Hamilton 30 minutes ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That buy back up is going to be beautiful
Khurshid Paray
Khurshid Paray 2 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Further sell off may be seen in coming sessins.
Kaveh Sun
Kaveh Sun 2 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Media hypes it up so they can push oil, stock price down for the rich and Biden. Biden will declare history for ‘lease reserve oil’ without realeasing any drop.
Ac Tektrader
Ac Tektrader 1 hour ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great ...Biden is finally using tactics to get the oil cartels to do what's good for American consumers.
Aaron Pierett
Aaron Pierett 1 hour ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden doesn't know what shoe goes on which foot. unquote
Dope Ekene
Dope Ekene 4 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
green on Monday
Martijn WN
Speculeerbeer 3 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think the FUD will continue a little longer. But after it passes we will see record highs.
Chandra Shekar
Chandra Shekar 54 minutes ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
green on Tuesday
chain creations
chain creations 4 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed rate hikes will be on a halt now equities will jump as even 10y bond yields at 1.48
Jon Bal
Jon Bal 4 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
naa people dumping equities for dollars thwn dumping dollars for anything that isn't dollars
Helen Anceriz
Helen Anceriz 6 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rich people sell their stock on black Friday, poor people go shopping
michael brennick
michael brennick 6 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Monday green
Chris Sundo
Chris Sundo 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Covid-19 & 2020 March Sell-off   2.0 ?
Nouman Warsi
Nouman Warsi 8 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
mutation rate of this variant is very high. Bad days are coming.
John Avenetti
John Avenetti 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
do you work for the elite or the media? it's a scam. is that their next plan. probably. covid is a flu like any other this scam is to.push communism
Edward Chong
Edward Chong 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
u are really full of nonsense. even scientists are still not familiar with this variant. mkt sell off becos multiples are too high. even if there is a lockdown it will be a very brief one cos most countries already have experience dealing with it for the past 24 months.
Comic Relieve
Comic Relieve 6 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It depends on where you live and you socioeconomic status.  The rich actually gets richer during Covid.
Ac Tektrader
Ac Tektrader 2 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chong, what they do know his has 5x the mutation rate of gamma variant, which is unusual and potentially very dangerous.
Mox Mox
Mox Mox 8 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The real crash will only come when the fed says they are taking their put out of the table and then actually do it. till then it's all thin air fake crashes
Mox Mox
Mox Mox 8 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fund managers were nervous sitting on their pile of unbooked profits and fearing that the music would stop and they don't get a chair. So as soon as the saw the new variety or whatever they used it as a excused to sell during thin volume Thanksgiving period. then it snowballs a bit and we get today's correction. we'll get a few more days of volatility, including new lows probably and then Uncle Sam will come to rescue again. Anybody can hear the headlines? "covid worsening situation globally makes the fed slow down their tapering and delay rate hikes until 2023 at least ...blablabalh
John Avenetti
John Avenetti 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
very close to accurate
Lesko Brandon
Lesko Brandon 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
New vaccine-resistant COVID variant, brought to you by evolutionary pressure of mass vaccination including of low-risk individuals by vaccines that do not prevent you from spreading the virus. Here is some real COVID news: Aside from the most vaccinated places in the world having COVID outbreaks (including even within the US, places like CA and NY doing worse than places like FL and TX), a recent study in Europe has shown that over the past 6 months the per capita death rate of all causes among people under the age of 60 who are vaccinated is twice that of people under the age of 60 who are unvaccinated. Recent studies have also shown that vaccinated people are more likely to die from heart attacks than unvaccinated people. Children who are vaccinated are also put at substantially greater risk of cardiac adverse events than their risk from COVID.
Show previous replies (4)
Comic Relieve
Comic Relieve 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol, unless you can back up your claims.  I call your bs.  My theory is you created this new account to spam us and you know it is not true too.
Miriam Morkhul
Miriam Morkhul 5 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I returned to your comment and saw that my like had been purged. Censorship and perception control...
Jo Riley
Jo Riley 3 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another FIFA player dropped on the field grasping his heart https://summit.news/2021/11/25/another-professional-footballer-player-suddenly-collapses-in-the-middle-of-a-game/
Jo Riley
Jo Riley 3 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And Wednesday Filipino Basketball Star Roider Cabrera Suffers Cardiac Arrest and Collapses   https://www.thegatewaypundit.com/2021/11/filipino-basketball-star-roider-cabrera-suffers-cardiac-arrest-collapses-court-tournament-rushed-hospital-losing-consciousness-video/
Jo Riley
Jo Riley 2 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow.  Just found a huge list of top athletes who have recently collapsed or died:   https://summit.news/2021/11/09/german-newspaper-highlights-unusually-large-number-of-soccer-players-who-have-collapsed-recently/
Bøÿ Łøÿ
Bøÿ Łøÿ 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
https://selfcareapp-links.cellcard.com.kh
Mario tragik
Mario tragik 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
virus fears ... lmao get out of here
Llewellyn Kruger
Llewellyn Kruger 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The media has become the virus, infecting the minds of the masses into believing their God given immune systems are incapable of doing what they were designed to do.
Rob Stamp
Rob Stamp 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
But somehow has left 5 million dead. is it the same immune system that can't combat Measles, Rubella, & Polio without the help of a vaccine?
John Avenetti
John Avenetti 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
exactly. and this rob guy thinks he's got the truth when all he believes unknowingly are lies
Jo Riley
Jo Riley 3 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not all media.  Old Establishment media like CNN, NBC, Reuters, AP, BBC - yes - very obvious they push a globalist spin.  But many viewers have left them for Epoch Times/NTD, NY Post, Breitbart, OANN, Newsmax, etc
Andrew Ulferts
Andrew Ulferts 3 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rob Stamp I think you mean experimental gene therapy. Don’t call this a vaccine. There is a reason we don’t want it, well actually like 30 readons.
Baris Duzalan
Baris Duzalan 1 hour ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What god? Any evidence to your claims?
bret lafrance
bret lafrance 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the market swing has absolutely nothing to do with covid, biden, trump, liberals, qnon nut jobs, right wing fascists, etc... this was a well orchistrated move by market makers to short sell the market, watch the vix, stay alert, don't be fooled.
Ac Tektrader
Ac Tektrader 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
soho still pushing your conspiracies theories...
soho electronics
soho electronics 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am in south Africa. we are VERY sure that this varient....if it really exists, must be a bio weapon. watch next week.. headlines...vaccines still effective against NU. pushing the sheep to get vaccinated by propaganda.
Jon Bal
Jon Bal 10 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
are the people complaining that biden made oil prices go up now going to thank him now for -13% today?
Jon Bal
Jon Bal 10 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
or will they then say biden doesnt care about oil workers
Ac Tektrader
Ac Tektrader 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't know Jon, but I think that is what Trump and his supporters would like to say.
Jokers R Us
Jokers R Us 9 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Anyone who blames any president for anything is am ldiot. Theyre puppets.
John Avenetti
John Avenetti 7 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oh dear. I was about to hammer them both. then I saw this. Couldn't have said it better.
Mox Mox
Mox Mox 10 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is what the left loves. a good market crash. more people getting po.or and getting stuck in their net.
Mox Mox
Mox Mox 10 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is what the left loves. a good market crash. more people getting poor and getting stuck in their net.
S S Shet
pingo_0070 10 hours ago
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good job uncle Sam... nice trick to cool off crude prices ... COVID variant is just an excuse to create panic ... come on , COVID is a virus .. and that's what viruses do .. mutate and come up with new variants all the time .. humans are facing such viruses since their existence.. don't make this an Armageddon like situation ... only fools are selling in panic .....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email