Risk trades are hit the hardest and we are seeing a typical flight to safety across markets with bond yields plunging alongside equities, while the yen and franc are benefiting the most in terms of flows among major currencies.
Adam put into detail the 'Nu' COVID-19 variant fears here, in case you missed it.
Now, it is still early to jump to conclusions about how this will all play out. I mean, the delta variant looked to be a game changer but it still didn't quite stop the world from progressing as it did over the past six months or so.
Sure, things in Europe does look to be turning ahead of winter but that arguably owes to a stall in vaccinations (and perhaps complacency) more than anything else.
Going back to the 'Nu' variant, the science suggests that it is very much a different strain with many more mutations unaccounted for. There's still little details but we'll get more information on that in the coming days surely.
But worst-case scenario is, the variant will be stubborn against vaccines and set back all the progress made over the past year or so in combating the pandemic.
Best-case? It fizzles out and vaccines are still the answer in defeating the variant spread.
However, just like if news that a meteor would crash into the planet, panic and hysteria is winning the trade for now and that is evident across markets today.
The worst-case in that is that we all die but the alternative is that we live and it is but another dip to buy. Will that be the case with this latest episode on the 'Nu' variant?
We'll see. But holiday-thin liquidity surely isn't helping to digest the moves, especially ahead of a weekend where many investors would arguably prefer to see some money off the table awaiting more news and information on things.