Markets Plunge Amid Omicron Concerns, US Spending Plan Retracts

Markets Plunge Amid Omicron Concerns, US Spending Plan Retracts

Germany’s central bank, the Bundesbank, said it will cut its economic growth forecast due to the recent pandemic restrictions. The bank expected the German economy to grow 2.5 percent in the current quarter, down from 3.7 percent in June.

Airlines and travel stocks fell sharply in early European trade. But the biggest loser in Britain’s FTSE 100 index was Informa, which hosts major in-person events. It fell 4.5 percent from 6.9 percent earlier.

In the United States, the future of President Biden’s $2.2 trillion domestic policy bill is in doubt after West Virginia Democratic Senator Joe Manchin III said he would vote against it because he feared it would lead to higher inflation.

The impact is starting to weigh on the economic outlook and contribute to the negative sentiment in the markets. Goldman Sachs said in a research note that it will slow the expected growth of the US economy next year.

Oil prices also fell on Monday. West Texas Intermediate crude futures fell more than 3 percent to $68.66 a barrel. Energy stocks were among the biggest losers in global markets.

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