LONDON- Global stocks tumbled and oil fell below $80 a barrel after news of a possibly vaccine-resistant coronavirus variant sent investors scurrying to the safety of bonds, the yen and the Swiss franc.
Little is known of the variant, detected in South Africa, Botswana and Hong Kong, but scientists say it has an unusual combination of mutations, may be able to evade immune responses and could be more transmissible.
British authorities think it is the most significant variant to date and have hurried to impose travel restrictions on southern Africa, as did Japan, the Czech Republic and Italy on Friday.
The European Union also said it aimed to halt air travel from the region.
“Markets have been quite complacent about the pandemic for a while, partly because economies have been able to withstand the impact of selective lockdown measures. But we can see from the new emergency brakes on air travel that there will be ramifications for the price of oil,” said Chris Scicluna, head of economic research at Daiwa.
The World Health Organization is convening an experts’ meeting later on Friday to evaluate whether the new variant is a “variant of concern.”
Global shares fell 0.8 percent and were on course for their worst week since early October.
European stocks plunged 2.7 percent, on track for their worst day since September 2020, with travel and leisure stocks particularly badly hit.
Germany’s DAX sank 3 percent and Britain’s FTSE 100 fell 2.7 percent to its lowest in more than a month.
MSCI’s index of Asian shares outside Japan fell 2.2 percent, its sharpest drop since August. Casino and beverage shares were hammered in Hong Kong, while travel stocks dropped in Sydney and Tokyo.
