Markets tumbles over new variant of coronavirus that causes COVID-19 called B.1.1.529 which has been identified in South Africa. Fears broke over global asset classes on concerns that the strain might fuel outbreak in many countries.
Officials are concerned if current vaccines are effective against the strain putting global efforts to reopen borders at jeopardy. Countries around the world have put bans on travel from South Africa and nearby countries.
U.S. futures reacted sharply with Dow Jones, S&P 500 and Nasdaq 100 lost 757.00, 82.75 and 202.50 points respectively.
Asian markets shed loss heavily as well with CSI300, HSI, KOSPI and Nikkei inching down by 0.74%, 2.67%, 1.47% and 2.53% respectively.
The European benchmark index was down by 2.5%. The index was down by 3.6% in early morning trading.
Crude oil futures priced in a potential cut in demand with WTI down by 6.1% and Brent Crude oil down by 5.00%.
*Note: Quotes are as of Thailand time 17:25 hours