March 30, 2023

Dubai Week

Complete Dubai News World

New “Corona” print world markets are most affected by “storms” and travel stocks

Global stock markets registered a sharp decline on Friday, hit by the discovery of a new variant of the highly contagious corona virus in South Africa.

Leading U.S. stock indices fell sharply in open on Friday, with shares of travel, banking and commodity sectors hit hard by news of the discovery of a new type of corona virus resistant to the vaccine.

The Dow Jones Industrial Average was down 1000 points, or 2.07%, at 34,866.69 points. The Benchmark Standard & Poor’s 500 Index was down 99.4 points, or 2.11%, at 4,602.63 points, while the Nasdaq Composite was down 300 points, or 1.9 percent, at 15,537.38 points.

During trading in Europe, the main CAC 40 index on the Paris Stock Exchange fell 4.40% to 6764.80 points and the London Stock Exchange fell 31.3 points, while the Frankfurt Stock Exchange fell more than 3.19%.

A new strain of corona virus called “P.1.1.529” has been discovered in South Africa, and it appears to be highly contagious, and scientists do not know whether existing vaccines are effective in combating it.

Several European countries, such as the United Kingdom, Italy and Germany, have announced measures to prevent travelers from entering South Africa.

Tourism and travel-related stocks were particularly affected, especially from the center of the epidemic. Shares of Airbus Aerospace Group fell more than 12% and German airline Lufthansa fell more than 14%.

In addition, the Japanese “Nikkei” index fell to a one-month low on Friday due to fears over the discovery of a new strain and reports from Chinese company Didi asking for passenger transport services. The New York Stock Exchange was removed from its list, which also negatively affected the mood.

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The Nikkei fell 2.53% to close at 28,751.62 points, its lowest level since October 25 and its biggest daily decline in more than five months.

The broader Topix index fell 2.01% to close at 1984.98 points, its lowest level in six weeks. The Nikkei fell 3.3% during the week, while the Topix fell 2.9%, the biggest drop in the last two indices. Week of September.

Travel-related stocks were severely affected as they benefited from increased domestic consumption from the successful control of the virus.

The Topix airline index fell 5.4% to a seven-month low, while the Topix Road Transport Index, which mainly includes shares of rail operators, fell 2.9% to a one-year low.

Shares of ANA Holdings fell 4.5% as the airline raised funds by selling convertible securities, highlighting the difficulties the sector faces.

Among railway operators, Casey Electric fell 6.3%, becoming the worst performer on the Nikkei index.

SoftBank Group Inc fell 5.2% after Bloomberg reported that Chinese regulators had asked senior executives of passenger transport company DT Global to draw up a plan to remove it from the New York Stock Exchange for data security reasons. (Agencies)