Global markets rattled over omicron vaccine concerns

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, October 27, 2021.

Brendan McDermid | Reuters

LONDON – Global markets have been rocked again due to concerns that the new omicron Covid-19 variant could potentially avoid vaccines.

Although health authorities have said it will take several weeks to get a complete picture of how omicron̵[ads1]7;s 30+ mutations affect the response to existing vaccines, Moderna chief Stephane Bancel told the Financial Times on Monday that he expects them to be less effective against the new the tribe. . Bancel also told CNBC on Monday that it could take months to develop and broadcast a vaccine specifically targeted at the omicron variant.

Shares in the Asia-Pacific fell during Tuesday’s trading, led by a fall of 2.4% for South Korea’s Kospi and 1.9% for Hong Kong’s Hang Seng index. Japanese Nikkei 225 fell 1.6%.

European stocks fell on Tuesday open to all, but erased Monday’s rise, after the market tried to start a boom after Friday’s strong global sales. The pan-European Stoxx 600 index was down 1.6% in the middle of the morning.

Stateside, Dow futures were down more than 550 points in early pre-market trading as vaccine efficiencies reversed the rise in sentiment following President Joe Biden’s claim that economic shutdowns and further travel restrictions were currently off the table.

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Spot gold prices rose more than 0.5% to more than $ 1,794 per troy ounce, while other traditional safe havens, the Japanese yen, also rose. The dollar was down 0.7% against the yen on Tuesday morning at 112.7.

The yield on the benchmark index for 10-year government bonds fell by 10 basis points to 1.4273% at 04:30 ET. The yield on 30-year government bonds fell by 6 basis points to 1.8166%. Interest rates move in reverse to prices and 1 basis point is equal to 0.01%.

In the crypto area, bitcoin fell 2.75% to $ 56,520. Oil prices also retreated, with the international benchmark Brent oil falling 3.2% to $ 71.12 a barrel and US crude falling 2.8% to $ 67.97

The measures come after European and American stocks tried a relief rally on Monday after comments from the South African doctor who raised the alarm about the new variant. Dr. Angelique Coetzee said the symptoms of omicron have so far been extremely mild.

Charalambos Pissouros, head of research at JFD Bank, said that this week’s move so far proves how sensitive market participants are to omicron headlines.

“We believe that this will be the main topic for a while. With that in mind, we are very reluctant to say that market concerns have abated, and that yesterday’s upswing is the beginning of a long-term improvement. Any new negative headline has a high chance of resulting in a new stage of massive sales, “said Pissouros.

Various analysts have warned that volatility could flourish in the coming weeks, but urged investors to stay the course and stay focused on the unchanged long-term fundamentals.

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