📉 European indices drop 3%, oil trades 5% lower
Risk assets sink today as investors are concerned about a new coronavirus variant in South Africa. New variant is said to be more transmissible and more resilient to antibodies.
Blue chips from almost all Western European countries trade over 3% lower at the start of the session. Risk of new lockdowns in Europe has been on the rise in recent weeks and the probability of imposing new restrictions is even greater.
Both WTI and Brent trade almost 5% lower already as potential new restrictions on mobility, including flights, threaten to destroy demand. In fact, Singapore has already banned arrivals from South Africa and nearby countries while Japan is mulling a similar move
Gold and other precious metals climb as resurgence of pandemic risks delaying policy tightening by the Federal Reserve
CHF and JPY lead on the FX markets as investors seek safety amid virus uncertainty
DE30 plunged during the Asian session and the downward move continues at the beginning of the European session. Taking a look at the daily interval, we can see that 61.8% retracement of a recent upward impulse is being tested at press time. Breaking below this hurdle would open the way towards the support zone in the 15,090 pts area.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.