Nov 26, 2021 1 min read

FTSE 100 sinks, Wall Street joins sell-off

Global stocks spooked over the new Covid-19 variant.
FTSE 100 sinks, Wall Street joins sell-off
FTSE 100 sinks

The FTSE 100 index slumped 3% at the open and is currently trading at 7,077 points.

The new Covid-19 variant B.1.1.529 has spooked markets over concerns that it could be more transmissible and resistant to vaccines.

The new variant was first identified in South Africa, where the country has seen a surge in infections.

The new variant that is spreading in South Africa will likely end up in Britain, the head of the COVID-19 Genomics UK Consortium said today.

And the Bank of England's chief economist weighed in, adding that new strains of Covid and the risk of another lockdown could derail the UK's economic recovery.

Travel and leisure stocks are leading losses across Europe, with British Airways owner IAG losing as much of a quarter of its value. Hotel groups InterContinental and Whitbread also slumped. Baking stocks are also down heavily.

Shares in some vaccine makers are soaring, though, with Pfizer up 7% and Moderna jumping 22%.

Across the pond, the Dow Jones has fallen 2.5% as Wall Street joins the selloff. With the US out for Thanksgiving, further erratic moves can be expected.

US travel companies are a sea of red, with cruise operator Carnival down 10% on the S&P 500, Royal Caribbean off 9.1%, and United Airlines falling 9.6%.

Hotel group Marriott are down 9.2%.

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