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Stocks sink on fears of COVID-19 variant | St. Louis News Headlines – St. Louis, Missouri

St. Louis, Missouri 2021-11-26 09:40:00 –

New York (AP) — Global stock and oil prices fall on Friday after South Africa discovers a rapidly spreading variant of the coronavirus and the European Union proposes to stop air travel from South Africa bottom.

Benchmarks in London fell 3% and Tokyo fell 2.5%. Shanghai, Frankfurt and Hong Kong also fell sharply. Dow Jones Industrial Average futures fell by more than 2%.

Some European countries have already stepped up antivirus control this week after their cases surged. Austria imposed a 10-day blockade, while Italy restricted activities by unvaccinated people. Americans have been advised by their government to avoid Germany and Denmark.

The EU of 27 countries has proposed to the governments of member states to suspend travel after stating that South Africa is the most populous state in which this variant is endemic. The UK has banned flights from South Africa and five neighboring countries.

“Investors are more likely to shoot first and ask questions later,” Oanda’s Jeffrey Halley said in a report. This was evident in the bond market behavior, where yields on 10-year Treasuries fell from 1.64% on Wednesday to 1.54%. The US bond market closed on Thursday due to Thanksgiving.

In the noon transaction, London’s FTSE fell to 7,099.69 and Frankfurt’s DAX fell 3.1% to 15,429.26. CAC in Paris plummeted 3.8% to 6,805.72.

On Wall Street, Benchmark S & P 500 futures fell 1.7% and Nasdaq futures fell 1%. The US market will close on Thursday and reopen on Friday due to a shortened trading session.

In Asia, the Shanghai Composite Index fell 0.6% to 3,564.09 and the Nikkei 225 in Tokyo fell to 28,751.62. The Hang Seng Index in Hong Kong fell 2.7% to 24,080.52.

Investors were already more cautious after predicting the possibility of responding to rising inflation by raising interest rates faster than previously planned in a memorandum of the October meeting released by the Federal Reserve this week. ..

Investors are worried that central bankers may feel pressure to withdraw the stimulus earlier than planned due to stronger-than-expected inflation. The Federal Reserve said earlier that it had foreseen to keep interest rates low until late next year.

Financial markets have been boosted by strong US corporate earnings, and there are signs that the global economy is recovering from last year’s historic decline in pandemics. Stock prices were boosted by simple credit and other measures developed by the Fed and other central banks.

In the energy market, benchmark US crude fell $ 4.22 (5.4%) to $ 74.17 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international oil price standard, fell $ 4 (4.9%) per barrel to $ 76.92 in London.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Stocks sink on fears of COVID-19 variant | St. Louis News Headlines Source link Stocks sink on fears of COVID-19 variant | St. Louis News Headlines

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