FTSE 100 dives 3pc and oil slides as Covid variant spooks markets

Investors are braced for a post-Thanksgiving selloff when the opening bell sounds in Wall Street today. 

Tumbling stocks in Asia and Europe do not bode well for those in New York, which have been down in pre-market trading.

It comes as the World Health Organization and scientists in South Africa are scrambling figure out how quickly the new B.1.1.529 coronavirus variant can spread and whether it’s resistant to vaccines.

The worries add to a wider picture that also includes concerns about inflation, an anticipated winding down of support from the Federal Reserve and slowing growth.

Ipek Ozkardeskaya, a senior analyst at Swissquote, told Bloomberg:

It’s terrible news. The new Covid variant could hit the economic recovery, but this time, the central banks won’t have enough margin to act. They can’t fight inflation and boost growth at the same time. They have to choose.

Carl Dooley, the head of European, Middle East and Africa trading at Cowen, added:

This is a big shock for people waking up (and) seeing the news.

Uncertainty and fear will remain high and maybe we aren’t going back to new highs straight away.

The New York Stock Exchange and the Nasdaq are operating on shortened hours today, from 9.30am to 1pm.