Biden aims to lower gas prices with release of oil reserves

Hong Kong/London (CNN Business)Dow futures plunged and oil fell 6% on Friday as the emergence of a new Covid-19 variant rattled global markets.

Asian stocks led the way, with Hong Kong’s Hang Seng Index (HSI) dropping 2.7%, while Japan’s Nikkei 225 (N225) was down 2.5%. European markets sold off heavily, with major indexes including the FTSE100, France’s CAC40 (CAC40) and Germany’s DAX (DAX) all down by between 2.5% and 3%.
US markets, which were closed Thursday for Thanksgiving, were slammed before the start of Friday’s shortened trading session. Dow (INDU) futures fell more than 700 points, or about 2%. Futures for the S&P 500 (INX) and Nasdaq (COMP) were down around 1.6% and 1% respectively.

    US oil sank 6% to around $73.50 a barrel. Brent crude, the global oil benchmark, fell 5% to around $78.

      South Africa’s health minister said Thursday that a new coronavirus variant appears to be spreading rapidly in parts of the country. It has also been detected in Botswana, Hong Kong and Israel.

      UK Health Minister Sajid Javid the variant “may be more transmissible” than the Delta strain and that “the vaccines that we currently have may be less effective.” The new strain has already prompted the UK government to ban flights from six African countries. Some EU countries are taking similar measures.
      Covid surge threatens Europe's economic recovery

      Investors were “spooked” by the discovery of the new Covid-19 variant, Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, said in a research note on Friday.
      Economists were already nervously watching a spike in Covid-19 infections in Europe. Some countries have introduced new restrictions to contain the spread, raising the prospect of reduced activity this winter at a time when inflation and supply chain woes are already clouding the outlook for growth.
      “Beyond the current wave of infections in core Europe, a new variant of the … virus that is spreading rapidly in South Africa is causing serious concerns,” commented economists at Berenberg bank in a note on Friday.
      “If Germany were to impose a national lockdown, we would likely have to downgrade our forecasts for German and eurozone GDP for Q4 slightly further,” they added.
      Travel and airline stocks are among the biggest fallers Friday.

        “With the delta wave in mind from earlier this year, investors are likely to shoot first and ask questions later until more is known about it,” Halley said.
        — Rob North contributed to this article.
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