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Stocks Plunge On New Covid-19 Variant Concerns

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Updated: 26 Nov 2021
  • Stocks nosedive after concerns about a new Covid-19 variant from South Africa.
  • European equity markets have plunged.
  • US stock futures are also in the red.
  • US Bond Yields Rise

Covid-19 New Variant Concerns

On Thursday, the WHO warned of a new Covid-19 variant emanating in South Africa, which caused the UK to temporarily suspend flights from 6 African countries. Alongside the ban on flights from South Africa, the UK has also suspended travel from Namibia, Lesotho, Eswatini, Zimbabwe and Botswana.

The EU is also moving to halt travel from South Africa. Stocks across the board have reacted negatively to the news.

European Equity Markets

In Asia, equity markets tumbled and its European counterparts have followed the same path. The FTSE 100 is down around 3% in the UK, while Germany's DAX has fallen around 2.9%, France's CAC 40 has decreased about 4%, and the Euro STOXX 50 is currently down approximately 3.6%.

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US  Markets

US stock futures haven't faired much better, with the DOW and S&P 500 dropping over 2% and the Nasdaq trading around 1.4% lower. Meanwhile, US bond yields have also fallen as investors flock to safe-haven assets such as bonds. The US 10 year yield has declined over 7% so far today.

However, it's important to be aware that following the Thanksgiving holiday, the US stock market will only be open until 1 pm EST. 

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