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Vaccine anticipation vs variant corona fear… Chaotic global financial market


With concerns over the rapidly spreading COVID-19 strain in the UK, more than 40 countries around the world have been restricted from entering the UK, and a notice of the closure of Terminal 3 is posted at Heathrow Airport in western London on the 21st (local time). (Photo = AFP/Yonhap News)

[뉴욕=이데일리 김정남 특파원 방성훈 기자] Is it a signal from the chieftain?

The world is again in terror as the unexpected’variant Corona 19′ emerges in the UK. Major countries, including the United States, urgently entered into restrictions on entry from the UK, and the financial market, which was swelled by vaccine expectations, collapsed at once. On Wall Street, the outlook for a bull market prevailed under the expectation that if we endure this’worst pandemic’, we will enter the process of ending Corona 19 by expanding vaccination. However, if the shock wave of a variant virus increases, the plate itself can change, so it is on the verge of being touched.

Major countries such as the United States enter into restrictions on entry to the UK

According to the Associated Press on the 21st (local time), the United States New York State agreed to pick up only passengers who had previously tested negative for Corona 19 on flights to New York with British Airways, where the corona 19 strain is spreading. This is a measure to limit the entry of passengers on flights departing from the UK. New York is the epicenter of the first pandemic in the United States and the center of the global financial market.

At a briefing, New York Governor Andrew Cuomo revealed that it had requested British Airways, Delta Air Lines, and Virgin Airways to inspect passengers coming from the UK. The reason Governor Cuomo delivered such a measure is to revive hopes of an end to the pandemic that has survived the recent corona 19 vaccination.

“If airlines decline the request, the state will take other steps,” he warned. New York State, along with the federal government, has oversight of JFK International Airport. It is read to mean that New York State will personally step up and even ban entry.

According to Governor Cuomo, there are six flights a day from England to New York, USA. He feared that “the worst can happen even if only one passenger is infected with the variant Corona 19.”

France, neighboring Britain, banned entry from the UK for 48 hours starting at 0 a.m. Germany, Belgium, Ireland, Italy, Romania, Russia, Switzerland, Spain and Canada also immediately restricted entry. In Asia, India and Hong Kong have joined the ban on entry.

Wall Street Fear Index Soars 17%… A bear market

Global financial markets responded promptly to concerns about the spread of a variant virus. On this day, the US Standard & Poor’s (S&P) 500 index fell 0.39% from the previous trading day. Investment sentiment froze despite the good news that the U.S. Congressional leadership has agreed to an additional $900 billion (about 990 trillion won) stimulus for Corona 19, which includes a $600 cash payment per person.

The Chicago Options Exchange Volatility Index (VIX Index), called the Wall Street Fear Index, jumped 16.64% from the previous trading day to 25.16. It is the highest level in over a month since last month’s 12th (25.35). The VIX index quantifies investor sentiment among the factors that have a big impact on the stock price. For example, if the VIX index is 25, it means that many investors expect the stock price to fluctuate by around 25% over the next month.

In particular, with the prospect of an economic rebound, aviation stocks and energy stocks, which were swaying little by little following technology stocks, fell at once. American Airlines shares closed at $16.10 per share, down 2.48% from the previous trading day. The same goes for United Airlines (-1.53%) and Delta Airlines (-1.33%). Chevron, a leading energy stock, fell 1.41 percent to $86.09.

Asian markets also fell at once. On the 22nd, the Korean KOSPI index fell 1.62% and the KOSDAQ index 2.61% compared to the previous trading day, and the Nikkei 225 index, the representative index of Japan and China, and the Shanghai composite index of China, fell 1.04% and 1.86%, respectively, closing the market. The Hong Kong Hang Seng Index also fell 0.8%.

“Rather, now is an opportunity” vs. “Realization of the control center”

Wall Street was somewhat superior in the prospect that the bull market would continue for the time being, but it is keeping an eye on what impact this variant Corona 19 will bring. Wall Street is a current that maintains a positive opinion and is keenly aware of the possibility of a stock market shock.

Courtney Gibson, CEO of Loop Capital, told CNBC that “(the bear market due to the variant Corona 19) is only a minor happening,” and “Rather, now is a buying opportunity.” Short Hills Capital founder Steve Weiss said, “We’ve seen stock prices rising fast and the market is getting too hot,” he said. “There are a lot of investors looking for a’January effect’ like in the past few years.”

However, some analysts say that the coronavirus variant could lead to the appearance of a court. This is because, if the strain has enough destructive power to neutralize the current vaccine, the premise of the financial market as Wall Street sees could be shaken. This means that the correction market due to the recent overbought perception may become reality.

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