Europe Markets: European stocks skid on discovery of new virus variant as airlines, banks reel
European stocks were on track to their worst single-day performance of the year, getting hammered after the discovery of a new more virulent strain of coronavirus.
The Stoxx Europe 600
SXXP,
-2.61%
dropped 2.3% to 470.52, after the discovery of what for now is being called the B.1.1.529 variant, that’s believed to be driving a spike of cases in South Africa. The World Health Organization is holding an emergency meeting and may call the new variant ‘Nu.’
The French CAC 40
PX1,
-3.58%
dropped over 3%, as the German DAX
DAX,
-2.89%
and FTSE 100
UKX,
-2.83%
also slumped. U.S. stock futures
YM00,
-2.18%
ES00,
-1.64%
also were rocked.
“We think it’s too soon to quantify the likely impact of this new variant but markets have had a very strong run over the last 12 months, and so it is no surprise to see a reaction like this,” said Dan Boardman-Weston, chief investment officer at BRI Wealth Management.
Investors flocked to safer assets such as German bunds, U.S. Treasurys, and gold
GC00,
+1.51%,
with the 10-year bund
TMBMKDE-10Y,
-0.314%
falling 7 basis points to -0.32%.
Each of the major sector indexes were dropping, led by travel and leisure and banks. Cruise operator Carnival
CCL,
-13.78%
lost 14%, and British Airways owner International Airlines Group
IAG,
-13.08%
stumbled 13%. The European Union was moving to halt air traffic from South Africa, a step the U.K. has already taken.
Italian diagnostics kit maker DiaSorin
DIA,
+7.64%
and French lab instrument maker Sartorius Stedim Biotech
DIM,
+5.93%
were among the few advancers.
