ASX200 closes down 0.5% after recovering from heavy morning losses, US futures higher

ASX closed down 0.5% after erasing heavy losses, US futures up, tech stocks gain, BPAY boss to head up illion, LaTrobe Financial cops $750k penalty and Nuix more class action.

Investors are bracing for a wild day on the stockmarket following the discovery of a new Covid-19 variant. Picture: NCA NewsWire / Damian Shaw

Welcome to the Trading Day blog for Monday, November 29. ASX closed down 0.5% after rallying from heavy losses in morning trade as fears of a new Covid-19 variant discovered in South Africa spook investors.

The S&P/ASX 200 Index closed down 0.5% at 7239.7  as commodity stocks tracked a rebound in crude oil.

The US markets recorded the heaviest loss in a year on Friday with the Dow Jones Industrial Average down 2.5 per cent, the S&P 500 2.3 per cent lower and the Nasdaq Composite slumped 2.2 per cent.

Fears of the Omicron variant has seen the US Nymex crude (WTI) price plummet 13.1 per cent to $US68.15 a barrel. Iron ore fell 3.4 per cent to $US96.65 a tonne.