Global Stock Markets Slump, Risk Shunned on New Covid Variant Fears

FTSE, DAX, Prices, Charts, and Analysis

The end of the week starts on a bad note with stock markets across the globe hammered lower on fears that a new, highly mutated, form of Covid-19 has been identified in South Africa. While US markets were closed to celebrate Thanksgiving, Asian markets fell with the Nikkei shedding 2.53%, while the HSI fell by nearly 2.7%. All other Asian stock markets recorded losses. In Europe, pre-market quotes suggest that both the FTSE and the DAX will open at least 2.5% lower, while the CAC 40 is seen opening over 3% lower.

The sharp risk-off move was also seen across a range of other asset classes. Gold popped nearly 1% higher to $1,802/oz, both Brent and US crude fell by around 4%, US 10-year Treasuries received a sharp flight-to-safety bid with their yield falling 10 basis points to 1.55% while the VIX – fear gauge – jumped by over 12%

Market conditions remain very volatile with the US equity markets only open for a half-day and while Black Friday is not an official holiday, many US states observe it as a holiday.

The WHO is convening a special meeting today to discuss this new Covid-19 variant and any headlines from this meeting will drive the market. Europe remains in the grips of a fresh Covid-19 outbreak with some countries within the block introducing new lockdown measures. In Germany, the seven-day average of new Covid-19 cases is just under 59,000, an unwanted record, while rates continue to climb across Europe.

FTSE Daily Price Chart – November 26, 2021

Global Stock Markets Slump, Risk Shunned on New Covid Variant Fears

DAX 40 Daily Price Chart November 26, 2021

Global Stock Markets Slump, Risk Shunned on New Covid Variant Fears

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What is your view on Equities – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.


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