Spreadex Market Update

Stocks plummet across the globe as new COVID variant frightens investors



All 3 major European indices dropped over 3% on open this morning as the Nu variant, discovered in South Africa, panicked investors.

There is now even more concern that restrictions and lockdowns are going to be imposed leading to another decline in growth.

The major losers in the FTSE today, as expected, were British Airways owner IAG, down over 20%, and aeroplane engine makers, Rolls Royce, who dropped more than 15%, further pushing back the return of long-haul travel.

UK markets were pushed even lower after the chief economist of the BoE, warned that the resurgence of the virus is forcing them to be more cautious, however they are still preparing for an interest rate hike.

US markets followed Europe as the DOW is currently down 2.87%, and S&P -2.25%.

In fact, the DOW sank to its worst day this year, due to the increased fears of lockdown.

It being thanksgiving could be contributing to the volatility, but the uncertainty surrounding this new strain and how much it realistically could impact the globe, is causing most of the instability.

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