Financial Markets Daily Report22 desembre 2020
A new variant of the coronavirus in the U.K. triggered a global sell-off yesterday. The new variant, which is said to be up to 70% more infectious, sent stocks lower across the world.
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- A new variant of the coronavirus in the U.K. triggered a global sell-off yesterday. The new variant, which is said to be up to 70% more infectious, sent stocks lower across the world. European stocks declined nearly 3% (their worst session since late October), while losses were milder in the U.S. and Asia.
- The risk-off mood also triggered losses across commodity markets, and the barrel of Brent oil dropped 2.6%.
- Despite the higher risk aversion, the decline in safe-haven bond yields was moderate and euro area peripheral spreads rose little. In FX markets, the euro fluctuated around $1.22 while the GBP continued to weaken, as the impasse in talks on a post-Brexit trade deal weighed further on the currency.
- On a more positive note, the European Commission formally approved the Pfizer-BioNTech coronavirus vaccine in the EU, just hours after the European Medicines Agency issued its positive recommendation.