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Wednesday, January 19, 2022

Markets and oil plummet as new variant of coronavirus returns travel restrictions.

West Texas Intermediate oil futures, the benchmark in the US, fell more than 13 percent to $ 68.04 a barrel, the lowest level since early September. The price of oil is particularly sensitive to viral restrictions that keep people at home. The drop came just three days after the United States and five other countries announced coordinated efforts to use their national oil reserves to try to bring down rising gas prices.

The European benchmark Brent crude oil futures fell 11 percent to about $ 73 a barrel. But Mr Ganesh said UBS predicts the price will rise to $ 90 a barrel by March, in part in anticipation that fears over new virus-related restrictions will be temporary.

The demand for the relative safety of government bonds has risen sharply, which has led to an increase in their prices and lower yields. The yield on 10-year US Treasuries fell 15 basis points, or 0.15 percentage points, to 1.48 percent, the largest one-day fall since March 2020. The yield on German bonds, Europe’s benchmark bonds, fell 9 basis points to minus 0.34. percent.

In response to market fluctuations in the past year, stocks that thrived in a quarantine and quarantine environment, including Zoom and Peloton, rallied. Companies vulnerable to travel restrictions, such as the cruise line Carnival and the aircraft manufacturer Boeing, have fallen.

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In Asia, the Nikkei 225 in Japan closed 2.5 percent lower, while the Hang Seng Index in Hong Kong fell 2.7 percent.

In Europe, energy stocks drove markets down. The Stoxx Europe 600 Index was down 3.7 percent. Britain’s FTSE 100 fell 3.6 percent, while major stocks in France and Spain fell about 5 percent.

As several countries, including the UK and France, rushed to restrict flights from South Africa and other African countries, airline stocks fell. IAG, the parent company of British Airways, fell nearly 15 percent, the largest drop in the FTSE 100.

“This new dip in confidence is the latest setback the industry needs, given that it is already facing constraints in Europe,” wrote Suzanne Streeter, an analyst at Hargreaves Lansdown. “It will take a lot more than a discounted ticket to calm nerves and restore optimism.”

World Nation News Deskhttps://www.worldnationnews.com
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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