Covid: Stocks hit as new options rattle investors
Written byTimes Magazine
Stock markets worldwide fell sharply after the unveiling of a new version of Covid raised concerns about the economic recovery. The FTSE 100 stock index fell 2.6% in London, while German and French markets also fell after falling overnight in Asia.
Shares of airlines and travel companies were hit the hardest.The UK and other countries have banned flights from six South African countries. UK Health Secretary Sajid Javid said scientists were "deeply concerned" about the new strain of Covid and its potential to bypass immunity.
The UK has temporarily banned flights from South Africa, Namibia, Zimbabwe, Botswana, Lesotho, and Eswatini from Friday afternoon to Sunday at 4 am.
What are the rules for traveling in the UK?
The six counties have been added to the UK's red travel list. This means any UK or Irish resident entering from those countries after 04:00 on Sunday will have to be quarantined at the hotel, and those returning before will be asked to self-isolate at home...
The FTSE 100 index opened significantly lower on Friday morning, with British Airways owner IAG leading the declines after the share price fell more than 10%. Rolls-Royce, which manufactures aircraft engines. Its shares also fell 9.4%.
EasyJet was one of the biggest losers in the FTSE 250 index, with its shares falling 9% and Whiz Air. Travel companies such as Carnival and Tui cruise lines also saw sharp declines.
"Fear has gripped financial markets and the tourism industry in another storm of violence," said Susanna Streeter, senior investment and market analyst at Hargreaves Lansdown.
"With Europe still battling the fourth wave of the virus, there are now concerns that the highly mutated strain of Covid found in South African countries will lead to a new worldwide halt to stop its spread, leading to a recovery."
Even though the FTSE 100 fell on Friday, the index is trading nearly 12% higher than a year ago. Several other countries - Germany, Italy, and Israel - have banned flights from the six South African countries. Indexes on leading stock markets in Germany and France fell more than 3% on Friday.
Trending News
