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FTSE 100 Crashes and Oil Hits Two Month Low as Covid Variant Fears Hit Markets – Business | Companies

A short summary.

The UK’s FTSE 100 is on track for its worst day of the year as the advent of variant B.1.1.529 is causing markets around the globe to slide.

The blue chip index of London’s largest publicly traded companies fell 190 points, or 2.6%, to 7121 points after hitting a six-week low this morning.

Travel, hospitality, oil and financial stocks are among the big losers as concerns exist that B.1.1.529 could lead to widespread new pandemic restrictions and slow economic recovery.

Airline group IAG are currently down 14%, with manufacturers and servicers of jet engines Rolls-Royce 10% discount. Conference organizer Informed (-7.5%) and hotel groups White bread and InterContinental (both -6.3%) are also among the top fallers of the FTSE 100.

Other travel companies with cruise lines have also been hit carnival currently down by 12.7%, holiday-proof TUI 10% discount and easyJet 9.9% down.

The sell-off came after the UK imposed travel restrictions on a group of South African nations as a surge in the heavily mutated variant of the coronavirus.

The South African rand hit an annual low.

The European markets are also slipping, with France CAC Loss of 3.6% and Germany DAX down by 2.9%.

New York will join the sell-off in a few hours, with the Dow Jones industry average falling over 2%, or 800 points, in pre-trading.

Ted Kemp

Dow futures lose more than 800 points due to fears of a new Covid variant in South Africa @EustanceHuang @jesserpound https://t.co/aDZWjH3eUU

November 26, 2021

Oil has fallen to a two-month low, with Brent crude dropping 6% at $ 77.35 a barrel on concerns that the global economic recovery could be hurt. The prices for industrial metals have also weakened.

Wall Street’s fear index, the VIX, has risen while cryptocurrencies have also slumped as investors drop riskier assets. Bitcoin is down nearly 9% today, putting it in a bear market (more than 20% from its recent high).


Bitcoin enters bear market area as risk assets collapse with the new Covid variant https://t.co/XdpvCkKP7J

November 26, 2021

Joshua Raymond, Director at Finance Broker XTB, says:

“The new Covid variant caused uncertainty in the markets today, as the appetite of investors shies away from risks. As a result, European stocks started the day in sell-off mode, with the FTSE 100 and DAX30 both falling 3%.

The biggest concern right now is that this variant can bypass the vaccines. This is an immediate concern of investors right now, and therefore their first step has been to protect their portfolio.

If this variant proves to be more effective and jeopardizes the success of the vaccine introduction, there is currently hardly a major threat to market stability to be recognized. ”

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