Global stock markets sink on resurgent virus fears; oil down

Global stock markets sink on resurgent virus fears; oil down

Global stock markets sink on resurgent virus fears; oil down

2 hours ago

Picture used for illustrative purpose only.

World stocks sank on Monday as the spreading Delta virus variant fuelled fears it could undermine the economic recovery, while oil prices tanked after leading producers finally agreed to hike output.

Oil prices plunged after the Opec+ alliance agreed on Sunday to pump an extra 400,000 barrels per day a month from August to meet rising demand as economies reopen.

London stocks gave up 2.6 per cent in afternoon deals meanwhile after the UK government lifted England's daily pandemic curbs despite soaring infection rates.

The British pound hit its lowest since February on Monday as global markets turned cautious over a surge in coronavirus infections, meaning that riskier currencies lost out to the safe-haven dollar.

Risk-aversion ruled the day as bond yields dropped and stocks faced their longest losing streak since the pandemic first hit global markets 18 months ago.

The Dow sank more than 2% on Monday as fears a spike in COVID-19 cases would halt a broader economic recovery pummeled economically sensitive and travel stocks and pushed bond yields to five-month lows.

People walk through Times Square in New York City. File/ Agence France-Presse

New infections surged in parts