European markets plummeted Monday as investors watched a fast-spreading new variant of the coronavirus that has shut down much of the UK
The pan-European Stoxx 600 fell 1.8% in early trading, while travel and leisure stocks fell 4%, leading to losses as all sectors and major stock markets moved into negative territory.
Traders are looking nervously at the new Covid mutation in the UK, which has resulted in a hard lockdown in London and other parts of South East England and a reversal in household blending over Christmas.
The variant is believed to be up to 70% more transmissible than the original strain of the disease. The World Health Organization said it has been identified so far in Denmark, the Netherlands and Australia.
It led to several countries in Europe and elsewhere blocking travel from Great Britain. France, Germany, Italy, Ireland and the Netherlands have all excluded flights from the UK, while Canada and Israel have done the same.
The situation could further complicate Brexit talks. Britain and the European Union are still deadlocked on post-Brexit trade relations as the December 31 deadline approaches, with disputes over issues like fisheries plaguing the negotiations.
Sterling fell sharply against the dollar, falling 1.7% to around $ 1.33.
In Asia, stocks traded mixed as the coronavirus situation in parts of North Asia – such as Japan and South Korea – remains severe.
Meanwhile, US futures were just after Congress agreed on a $ 900 billion stimulus package for the coronavirus. Lawmakers will vote on the emergency relief and finance bill on Monday.
In terms of data, Eurozone consumer confidence figures will be released at 3pm London time.
Travel supplies suffer
British Airways’ parent company, IAG, fell 13.5% in early trade, leading to a broad drop for airlines and travel companies.
Cruise operator Carnival was down 8.8%, while Tui, Lufthansa and Rolls-Royce all slid more than 7%.