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Global stocks drop, oil tumbles on fresh travel bans
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Global stocks dropped Monday as a fast-spreading strain of coronavirus emerging from England prompted fresh travel restrictions, dealing another blow to prospects for the global economic recovery.
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Futures tied to the S&P 500 dropped 1.9%, pointing to losses at the opening bell for the benchmark stocks gauge, which ended last week at its second-highest level on record. Futures linked to the technology heavy Nasdaq-100 index fell 0.5%.
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Overseas, European shares tumbled after countries across the continent barred travelers from Britain in an effort to keep out a highly infectious variant of coronavirus that is spreading rapidly in England. The Stoxx Europe 600 slumped 2.4%, led lower by banking, energy and travel-and-leisure stocks.
“There is obviously fear on the part of policy makers,” said Paul Donovan, chief economist at UBS Global Wealth Management. “The fact it spreads faster probably does extend more restrictions for a longer period. That in turn has economic consequences."
Oil prices also retreated amid expectations that fresh restrictions on European travel and transport will pinch fuel demand heading into 2021. Brent-crude futures, the benchmark in international energy markets, lost 5.1% to $49.49 a barrel.