Stocks are a sea of red today as new strain of coronavirus in the U.K. seriously spooks investors

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Equity futures signal sharp losses at the open

In the U.S., equity futures pointed to sharp losses at the open even after Congressional leaders reached a deal on roughly US$900 billion of outlays to support the economy amid escalating virus cases. The House of Representatives is expected to vote on it on Monday.

The U.K. virus mutation is raising concern that the central assumption in all of next year's forecasts and views could actually turn out wrong. That is quite a scary thought indeedWhile safe-haven assets such as German and U.S. government bonds rallied, gold, which usually rises during times of turmoil, reversed earlier gains to fall 0.6 per cent to US$1,868.

The emergence of the mutant strain of the virus, said to be up to 70 per cent more transmissible than the original, in Britain is threatening to put a damper on year-end, as investors count down to the end of a chaotic 2020.

 

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