The new strain of covid-19 has spooked the markets. Here's a summary of what's happening, and possible outcomes

Posted: Dec 21, 2020 21:55

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The discovery in the UK of a new covid-19 mutation which spreads 70% more rapidly has caused equity markets worldwide to tank sharply (Dec 21, 2130 IST). The sensex, with a loss of 3% is one of the worst hit indices, with European indices not far behind.

Crude Oil, Airline stocks and the British Pound were also among the hardest hit assets.

Several countries - including India - have stopped flights to and from Britain.

Though the new covid-19 variant spreads more rapidly, it is not yet known to be any more deadly than the previous ones, and it is expected the new vaccines will be equally effective against it.

A few US analysts feel that investors should not be panicking about the new strain, especially since a new $900 billion coronavirus stimulus deal had been agreed to jointly by Democrats and Republicans.

Financial Times : European stocks sell off as new Covid strain unsettles investors

The Economist : A new coronavirus variant may derail pandemic-control efforts

The Guardian : What is the new Covid strain – and will vaccines work against it?

MarketWatch : A new COVID-19 strain is sending stocks plunging, but here’s why investors shouldn’t panic, says this analyst

More stories about: Covid-19 Markets

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