With the arrival of the new mutant strain of the Covid-19, Omicron, as announced by the World Health Organization (WHO), the stock markets across the world have witnessed a sharp fall. The fear of the pandemic fueled a new economic turmoil across nations in Asia, Europe and the United States with a steep drop in the Sensex.
The Pan European stocks on one hand dropped by 2.8% with the travel stocks crashing heavily as a result of the travel restrictions. The Wall Street Stock too dropped after reopening post Thanksgiving in the US whereas Japan's Nikkei 225 and Hong Kong's Heng Seng dropping by 2.5% each.
A chaotic Friday was also witnessed on Dalal Street. The announcement resulted in the drop of more than 1400 points with an erosion of ₹4.5 Lakh crore rupees of investors wealth.
The aftershock of the news was also felt in the global oil market. The oil prices have plunged over 10% which was the highest ever drop ever since last year.
Cryptocurrencies too suffered losses with Bitcoin declining by 7% on Friday. The price of Gold and Silver too hiked by 1 percent.
The discovery of a new strain of covid greatly triggered the global restrictions with countries calling for travel bans. The new mutation, found in South Africa, later detected in different parts of the world further strengthened the travel restriction and paved the way for another risk of global shut down of the economy.