After the discovery of a new Covid variant, stock markets across the world have fallen sharply. This new variant rattles the investors which may impact badly on economic recovery.
The main share markets in Germany, France as well as the US are experiencing a downward slope of share prices. The FTSE 100 index of leading UK shares moved to 3.7% down. Shares in airlines and travel firms were also hit hard.
Stock markets in Japan, Hong Kong, and Australia also fell. On fears the new Covid strain. The oil price also declined. Investment director at AJ Bell Russ Mould explained, “The drop in the oil price is the market’s way of saying it is worried about a reduction in economic activity.”
Mr. Mould also said, “The flipside of falling commodity prices is that a weaker oil price should provide some relief in terms of inflationary pressures. That may cause central banks to be more cautious towards raising rates in the near-term, however, it does depend on whether the new Covid strain causes significant disruption or can be contained as best as possible in a rapid manner.”
UK Health Secretary Sajid Javid said, “We’ll be contacting affected customers with information about their flight. We’re currently reviewing our schedule of South Africa operations for the coming week.”