Baba UmarGlobal stocks along with oil prices and the pound have fallen after a highly infectious strain of coronavirus discovered in Britain had traders seeking shelter.
European equities were hammered on Monday as more than two dozen countries from India to Argentina suspended flights from Britain in the wake of the latest twist in the coronavirus saga.
While experts say there is no evidence the UK variant of the virus – one of several mutations – is more lethal or will affect the impact of vaccines, it may be up to 70 percent more transmissible, according to early data.
Travel-related shares were broadly lower, with US equities Expedia, Marriott International, and United Airlines all off more than one percent.
Worries about the British outbreak highlight "the familiar concern about the virus' effect on the economy" and "travel-related stocks are taking it on the chin," TD Ameritrade's JJ Kinahan said in a note.
READ MORE: WHO says new virus strain prevalent in UK can be contained – latest updates
Investors' concern
Fears about the new Covid-19 strain blunted the boost from the deal hammered out by US legislators on a $900 billion relief package after months of wrangling between Democrats and Republicans.
The package will include a new but smaller round of pandemic relief payments. US Treasury Secretary Steven Mnuchin said the $600 checks will go out as early as next week.
"The US got its stimulus package through but it seems that was largely priced in and investors are more concerned with the new strain of Covid-19," Oanda analyst Craig Erlam told AFP news agency.
"Coming at a time when another Brexit deadline has been missed... it's no surprise to see sentiment taking a big hit."
READ MORE: List of countries banning travel from UK grows over fear of virus variant
Over 16 million Brits in lockdown
The new coronavirus strain said to be up to 70 percent more transmissible than the original, has put some 16 million Britons under tougher lockdowns and prompted several countries to shut their borders to the UK.
Worries over the new strain sent European stocks plunging. The pan-European STOXX index ended 2.3 percent lower.
In both Europe and the United States, travel and leisure stocks, which had been expected to be among the biggest beneficiaries of an economic reopening, fell.
The British pound also tumbled on virus concerns, as well as the lack of a post-Brexit trade deal ahead of a December 31 deadline. It was last down 0.45 percent at $1.3462.
The euro traded lower, too, down 0.17 percent to $1.2234.
Meanwhile, commodities that had been expected to benefit from a growth upswing next year plunged.
Both Brent and US crude dropped more than 2 percent while copper fell off the $8,000-per-tonne mark it recently scaled for the first time since 2013.
