UK, EU stock markets take hit from new COVID-19 strain

Major UK and EU stocks plummeted on Monday to a nearly three-week low amid the new lockdown measures, prompted by the spread of the new mutated COVID-19.

The new COVID-19 mutant, which spreads 70 percent faster, has exploded infections in the UK.

European shares slumped on Monday as concerns grew over the new strain of the coronavirus and stringent lockdown in England and travel bans that it triggered

After ending last week higher, the pan-European STOXX 600 index slid 2.3% .

London’s FTSE dropped 2.1% even as the pound sank.

Germany’s DAX was down 2.3%.

Travel and leisure stocks shed 5.5% and were on course for their worst day in three months, while oil majors led losses in Europe as new restriction spurred worries about a hit to demand and weighed on crude prices.

Hong Kong was the latest to announce a UK flight ban, to take effect from Monday night.

It was the first city in Asia to announce such a halt after a new super-virulent strain of COVID-19 was identified in Britain.

Health Secretary Sophia Chan said on Monday there was a need to launch more vigorous and targeted measures to prevent further spreading of COVID-19 in Hong Kong.

Asian nations including Japan and South Korea said they were closely monitoring the new strain, but did not immediately cancel UK flights.