After Moderna warned that existing vaccines won't be as effective against the new coronaviruses variant, global stock benchmarks and oil prices fell sharply on Tuesday, spurring investors to invest in safe-haven assets such as government bonds and the yen.
In an interview, Moderna's chief executive, Stephane Bancel, said there was no world where the effectiveness is the same as in the world of Omicrons.
I think it's going to be a material drop. I just don't know how much data we need to wait for the data. All the scientists I've talked to are like 'this is not going to be good,' Bancel said.
Bancel said earlier on on CNBC that there should be more clarity on the efficacy of COVID-19 vaccines against the Omicron variant in about two weeks, but it could take months to ship a reworked vaccine designed for it.
It's not good news, and it's coming from someone who should know, said Joe Capurso, currency strategist at the Commonwealth Bank of Australia. After Federal Reserve Chairman Jerome Powell told Congress that high inflation will continue until the middle of next year, the central bank may consider moving up the tapering of the asset-buying program it introduced last year to support the economy during the epidemic.
Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, said that the Fed is the ultimate owner of the 'transitory characterization and the chair's decision to move beyond that is a decidedly hawkish step.
The European travel and leisure stocks posted their biggest monthly fall since the initial COVID 19 lockdowns in March 2020 due to concerns that the new variant would lead to more travel restrictions.
The Dow Jones Industrial Average DJI fell 652.22 points, or 1.86%, to 34,483 in the United States. The S&P 500 SPX lost 88.26 points at the end of 72, or 1.90%, to 4,567. The Nasdaq Composite IXIC dropped to 15,537, or 245.14 points, or 1.55%, on 01. The price of the 10-year notes last went up 26 32 to yield 1.4426%, from 1.529% late on Monday.
Omicron worries sent the yield on 10 year German bunds - regarded as one of the safest assets in the world - to its lowest level in just over a week at 0.345%. Japanese yen -- traditionally considered a safe harbor due to its role as a funding currency, was near its highest level of the month.
U.S crude fell 4.52% to $66.79 per barrel and Brent was at $70.57, down 3.91% on the day.
The Dow Jones Industrial Average DJI fell 652.22 points, or 1.86%, to 34,483. In the United States, the Dow Jones Industrial Average fell 652.22 points, or 1.86%, to 34,483. The S&P 500 SPX lost 88.26 points, or 1.90%, to 4,567 at the end of 72. The Nasdaq Composite IXIC dropped by 245.14 points, or 1.55%, to 15,537, on 01. The price of the 10 year notes rose 26 32 to yield 1.4426%, from 1.529% late on Monday.
Omicron worries sent the yield on German 10 year bunds -- considered one of the safest assets in the world -- to its lowest level in less than a week at 0.345% The Japanese yen - traditionally viewed as a safe harbor due to its role as a funding currency, near its highest level of the month.
U.S. crude fell by 4.52% to $66.79 per barrel, and Brent was at $70.57, down 3.91% on the day.