Stocks And Bitcoin Tumble On Renewed Covid Fears

Stocks And Bitcoin Tumble On Renewed Covid Fears
Andrew Rummer

about 2 years ago1 min

Mentioned in story

Investors sold stocks and bitcoin on Friday and headed for the safety of haven assets like gold and the Japanese yen as scientists said they’d discovered a heavily mutated form of coronavirus in South Africa. 

Futures on the S&P 500 dropped 1.6% as of 7:50am in New York as US markets prepared to reopen following the Thanksgiving holiday. Bitcoin sank 8% to a seven-week low of $54,242. 

Meanwhile, investors pushed up the price of the safest assets: gold climbed by 1% and the yen strengthened 1.2% against the US dollar. The price of US government bonds (a.k.a. Treasuries) gained as traders pared bets on how soon the Federal Reserve will increase interest rates.

Scientists in South Africa are examining the new virus variant – currently known as B.1.1.529 – to understand how quickly it might spread and whether it has any resistance to the current crop of coronavirus vaccines. The market reaction to the news serves to underline how dependent future investment returns are on a steady return to normal following the pandemic. Investors will be hanging on every new piece of information coming out of South Africa in the coming days.



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG