Why fear of growth setback has spooked investors

News of a potentially fast-spreading new coronavirus variant has already triggered a violent reaction on markets and in a number of different asset classes. While much attention has naturally alighted on equity markets, with big falls in the FTSE-100 and continental European indices such as the DAX in Germany and the CAC-40 in France, probably the most significant move has been in the oil price. At one point this morning, the price of a barrel of Brent crude fell to $77.28 – a level it has not seen since 24 September. And, while a new coronavirus variant is undoubtedly unwelcome…