Stocks are poised for a lower open as fears of a new more easily spread variant of Covid-19 discovered in the UK dampens the hopes for a end to the year long battle of the novel virus.
With about an hour before the opening bell, Dow Futures are trading down 1.4%. Stocks particularly hard hit are those stocks that would have benifitted the most from the end of the pandemic such as airlines, cruise lines, ride sharing companies.
The new Covid-19 variant is believed to be up to 70% more contagious than the existing strain based on early analysis which is not good news considering the existing strain was already highly contagious.
The biggest question to me, and one I have not seen news on, is will the new vaccines being developed and distributed provide protection against the new variant. If so then this unwelcome turn of events will just be a short term issue which could cause a surge in Covid cases for the next few months.
But if the new vaccines do not provide protection against the new variant (and others that seem sure to follow), then the outlook for a quick end to this pandemic will have really dimmed.
If you have heard anything regarding the new vaccines ability to protect against mutations in the Covid-19 virus please drop a note in the comments.
Till next time, Cheers and be safe out there!
