The Daily Chase: COVID variant roils global markets; Crucial Enbridge decision due today

The new COVID-19 variant is shaking global markets. Major European indices have been down, futures are pointing to a shart drop and WTI has been up to 6 per cent lower.

The new COVID-19 variant is shaking global markets. Major European indices have been down more than three per cent, futures are pointing to a sharp drop at the start of trading in this shortened session in New York, West Texas Intermediate crude was down more than six per cent at one point, airline and cruise stocks are sliding, the U.S. 10-year Treasury yield is falling, and Bitcoin has slid seven per cent into bear market territory. All of this as South African health officials sound the alarm on the B.1.1.529 variant (and plead with billionaires like Warren Buffett and Jeff Bezos to help with the giant financial burden), which will be the subject of a World Health Organization meeting today. We’ll have plenty of insight on the market reaction, and the threat to a global economic recovery, throughout the day.

29% OF MORTGAGE HOLDERS UNPREPARED FOR HIGHER RATES

That’s the key takeaway from the latest Leger survey done for BNN Bloomberg and RATESDOTCA. Those nearly one-in-three respondents to the survey (who either have or are planning to get a mortgage) said they either don’t know or aren’t familiar with the impact of rate increases on monthly mortgage payments. Which is alarming ahead of the rate-hiking cycle that’s expected to start early next year. More details at BNNBloomberg.ca and we’ll dig into this with RATESDOTCA Managing Editor John Shmuel in The Close.

AWAITING CRUCIAL PIPELINE DECISION

The Canada Energy Regulator will announce its decision today on Enbridge’s application to change its tolling system for the Canadian Mainline pipeline system, which is this country’s largest conduit of crude oil. In short, Enbridge wants customers to sign up for long-term contracts that would account for 90 per cent of the Mainline capacity. That plan sparked an uproar from some industry heavyweights, including Canadian Natural Resources which in January 2020 blasted the proposal as “an abuse of market power by Enbridge and unjustly discriminatory, and not in the public interest.” The CER’s ruling is due to land at 4:30 p.m. We’ll be ready.

B.C. STORM RECOVERY