Quebec Standard

Monday, October 2, 2023

Global financial markets and oil prices collapsed with break out of a new COVID-19 variant in South Africa

After South Africa found a new, possibly fast-spreading coronavirus type and the European Union recommended restricting air travel from the region, global financial markets and oil prices dropped on Friday.

After South Africa warned the so-called Nu strain was spreading in its most populated province, the E.U. urged a mass travel suspension to member nations.

Flights from South Africa and five neighbouring nations were immediately suspended in the United Kingdom. Austria enforced a 10-day curfew, while Italy limited unvaccinated people’s movements. The U.S. authorities recommended Americans stay away from Germany and Denmark. A few persons have tested positive for the new variation in Belgium and Israel, and the rush of data points has created a flutter of confusion.

In premarket trading, the Dow Jones Industrial Average, the S&P 500, and the TSX Composite Index were all considerably down, and those losses persisted throughout the trading day. By lunchtime, all three had lost around 2% of their value.

“This news has entirely eclipsed early anecdotal indications of robust in-person and online visitation for Black Friday sales,” SIA Wealth Management’s Colin Cieszynski said. The markets in New York will close at 1 p.m. on Thursday due to the Thanksgiving weekend. 

The stock markets in the United States are fairly calm on Friday. Cryptocurrencies plummeted in value as investors flocked to gold, treasuries, and the U.S. dollar, which are seen as a safer store of value.

Source: CBC News

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