5 Keys on Wall Street By

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By Geoffrey Smith – Risk assets around the world plummet after South Africa identified a new strain of the heavily mutated Covid-19 virus that appears to have driven off the Delta variant in regions where it has been localized. WHO will hold an emergency meeting to determine if it turns out to be a “worrying” variant. Stocks, emerging market currencies, cryptocurrencies and oil are among the most affected asset classes. The news clouds a bit more on Black Friday this year. Here are the top five issues to look out for this Friday, November 26, in the financial markets.

1. A new strain of Covid-19 is identified

South African health authorities have identified a new strain of the Covid-19 virus, raising concerns that it may bypass the defenses of the current generation of vaccines.

The new strain, known as 1.1.529, has quickly become dominant in the regions of South Africa where it has been identified. The World Health Organization has called an emergency meeting for this Friday to discuss whether the strain is a worrying variant. If so, it will be named after the Greek letter “nu”.

Incidences of the strain have already been identified in Hong Kong, both in patients who had recently traveled to southern Africa. It is not yet clear whether the disease is more dangerous to humans than the Delta variant. However, the emergence of a new strain at a time when cases are already at record highs in Europe is likely to increase the risk of longer and tighter restrictions.

2. Markets fall due to fear of a new wave of containment measures

Risk assets around the world have taken the news badly, with European stock indices falling more than 4% in some cases before stabilizing a bit.

As for the equity market, the familiar pattern of the pandemic has quickly reaffirmed, with stocks in the travel and hospitality sector being the hardest hit and those in the health and e-commerce sector the most profitable. In the foreign exchange market, safe-haven currencies such as the yen and the Swiss franc have performed better, while the dollar has soared against commodity-linked currencies and the British pound, which was forced to return to revalue interest rate risk.

Cryptocurrencies also suffer, due to forced liquidations. Cryptocurrencies also suffered due to forced liquidations. At 12:30 pm (CET), it fell 5.4% to record a seven-week low, while it fell 6.9%, 7.8% and 6.2%.

3. US stocks prepare for a strong sell-off

US equity markets are targeting a lower opening this Friday, and tight liquidity will exacerbate the magnitude of the moves. All travel-related stocks will come under heavy pressure, with Boeing (NYSE 🙂 dropping 6.4% pre-open, AirBNB 6.9% and Marriott 7.2%. The stocks of airlines and cruise ships are inevitably the worst performers, with falls of between 7% and 12%.

At 12:15 pm (CET), the {{8873 | Jones futures}} lost 812 points, or 2.3%, while they were down 1.9% and down 1.3%.

The news has also permeated financial values, as the chances of an anticipated rise in interest rates by the Federal Reserve have diminished. The biggest winners were the most favored companies at the start of the pandemic as investors have been aggressively shorting as the economic outlook has improved in recent months, such as Zoom Video and Peloton (NASDAQ 🙂 stocks.

4. Hit the Black Friday forecasts

The new strain of Covid-19 has cast even more shadow over what already threatened to be another rather mediocre Black Friday for retailers, perhaps making people think twice about depleting cash balances further.

Many stores were closed on Thursday and others were reluctant to encourage crowds of shoppers to crowd the stores, so it’s far from clear what this sale weekend will look like relative to previous ones.

Black Friday comes this year at a time when growth in retail sales is showing signs of fatigue, after months in which American consumers have depleted the savings accumulated during the pandemic. However, personal spending remained strong in October, increasing by 1.3% for the month as a whole, its largest monthly increase since March.

5. Oil falls due to fear of a new setback to air transport

Oil is also on its way to its worst day since July in response to the news, amid new fears that mobility restrictions will hurt an already stumbling air travel market and perhaps local travel as well.

The rebound in air travel is a key component of the demand growth forecast for 2022, as it represents the only significant part of oil demand that remains clearly below 2019 levels.

The European Union and the United Kingdom have already suspended flights from South Africa, and the UK ban extends to a handful of southern African states.

Around 12:30 p.m. (CET), futures fell 6.8% to $ 73.06 per barrel, after registering two-month lows, while futures fell 5.9% to 77.33 dollars per barrel.

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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