Stocks and oil prices fell today as surging Omicron Covid-19 cases triggered tighter curbs in Europe, and US growth prospects dimmed after a $1.75 trillion domestic investment bill suffered a potentially fatal blow.
The spread of the Omicron variant saw the Netherlands go into lockdown on Sunday and put pressure on others to follow, though the US seemed set to remain open.
European stocks ended lower in their worst session for three weeks amid a wider equities sell-off.
The CAC in Paris was down 56 points (0.82%) to close at 6,870, while the DAX in Frankfurt was down 292 points to 1.88% to 15,239 and London's FTSE index dropped 71 points (0.99%) to 7,198.
Dublin's ISEQ index dropped 143 points (1.77%) to 8,004. Shares in Permanent TSB were up 4.36% to €1.55, while shares in Kenmare Resources were up 4% to €5.20. Meanwhile, shares in Smurfit Kappa dropped 3.57% to €45.17.
US stock indexes fell more than 1% today, dragged down by concerns about the impact of tighter Covid-19 curbs on the global economy, and a potentially devastating setback to President Joe Biden's investment bill.
"Typically what happens in Europe is a bit of a preview for what we see in the United States. So, if we see a lot more infections in the US, it could stress hospitals, make people less reluctant to get out, spend, and partake in the economy. That's definitely a cause of concern," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
Earlier in Asian trade, Tokyo's Nikkei index sank 2.1%, while Hong Kong's Hang Seng index dropped 1.9% as a result of those growing Omicron concerns.
Meanwhile, oil prices slumped more than 4% today as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions to combat its spread could dent fuel demand.
