Home » Economy » European stocks fall sharply after reports about the new South African mutant of the Corona virus

European stocks fall sharply after reports about the new South African mutant of the Corona virus

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European shares fell sharply on Friday amid widespread selling, after a report on the discovery of a new strain of the Corona virus that may be resistant to vaccines, which reinforced fears of a new blow to the global economy and kept investors away from risky assets.

European shares fell sharply on Friday amid widespread selling, after a report on the discovery of a new strain of the virus Corona They may be resistant to vaccines, which has fueled fears of a new blow to the global economy and kept investors away from risky assets.

The Stoxx 600 index ended trading down 3.7 percent, to record the worst daily performance since June 2020. The index’s losses during the week amounted to 4.5 percent.

In addition, the British FTSE 100 index fell 3.6 percent, the German DAX fell 4.2 percent, and the French CAC 40 index fell 4.8 percent. Shares in the travel and leisure sector plunged 8.8%, their biggest daily loss since March 2020.

Little information is available about the new strain discovered in South Africa, Botswana and Hong Kong, but scientists said it has an unusual mixture of mutant and may be resistant to vaccines or more contagious.

For its part, Britain announced a temporary ban on flights from South Africa and several neighboring countries, starting at 1200 GMT Friday.

The travel sector plunged 13.6 percent during the week, and was the worst performer. It prompted fears of an increase in injuries COVID-19 European stock markets fell from record highs last week on fears of more restrictions.

The oil and gas sector also lost 5.8 percent, while mining shares fell five percent, with oil and metal prices falling due to fears of an economic slowdown due to the new strain.

FRANCE 24/Reuters

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