The discovery of a new type of coronavirus in the UK with a 70% higher rate of transmission than the original type caused the currency and stock markets in Europe to fall, while the dollar once again emerged as a risk-averse asset. Investors rushed to buy dollars.
Following the discovery of this type of virus and the imposition of restrictions on entry and exit to and from the UK by a number of countries, European stock markets have lost 2% of their value in the early hours of the first day of the week.
With this new discovery, 16 million Britons are now awaiting strict quarantine from the British government, and this event has had the effect of the agreement of the leaders of the US Congress on the $ 900 billion financial package.
The British Prime Minister Boris Johnson will hold an emergency meeting with cabinet members today in response to the news and will decide on the restrictions needed to prevent the spread of the virus.
This happened to London at a time when European and British negotiators had not yet been able to reach an agreement on the post-brigade agreement, 10 days before Britain’s complete secession from the European Union.
These two events put a lot of pressure on the pound sterling and so far it has lost nearly 2% of its value against the dollar. The London Stock Exchange was also alarmed by the news today, and so far 1% of the London futures index has melted. Shares of two major British banks, Lloyd’s Bank and Barclays, have fallen more than 6 to 7 percent, raising concerns among market shareholders.
The Dex Frankfurt Stock Exchange index in Germany also fell by about 2%, and the tourism, travel and entertainment industry indexes of the “Pan-Europe” index have fallen by more than 5% in trading on the first day of the week.
The Wall Street Panic, also known as the Weeks Index, has risen 25 percent, reflecting investors’ fears of the stock market. This is the largest increase in the panic index since December 11.
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