Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks, oil slide as Omicron worries push investors to safe havens

Stock MarketsNov 30, 2021 06:16PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh/File Photo 2/2

By David Randall

NEW YORK (Reuters) - Global stock benchmarks and oil prices fell sharply on Tuesday after drugmaker Moderna (NASDAQ:MRNA) warned that existing vaccines are unlikely to be as effective against the new coronavirus variant, spurring investors to pile into safe-haven assets such as government bonds and the yen.

"There is no world, I think, where (the effectiveness) is the same level," Moderna's chief executive, Stephane Bancel, told the Financial Times in an interview, comparing the effectiveness against the new Omicron variant to prior variants.

"I think it's going to be a material drop. I just don't know how much because we need to wait for the data. But all the scientists I've talked to ... are like 'this is not going to be good,'" Bancel said.

Bancel said earlier 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 begin shipping a reworked vaccine designed for it.

"It's not good news, and it's coming from someone who should know," said Commonwealth Bank of Australia (OTC:CMWAY) currency strategist Joe Capurso. "Markets have reacted in exactly the way you'd expect them to."

Losses accelerated after Federal Reserve Chairman Jerome Powell told Congress that high inflation will persist until the middle of next year, leaving the central bank "likely" to discuss speeding up the tapering of the asset-buying program it introduced last year to support the economy during the pandemic.

"We've long maintained 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," said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets.

MSCI's gauge of stocks across the globe shed 1.39% following broad declines in Europe and Asia. Concerns that the new variant would lead to more travel restrictions continued to hammer European travel and leisure stocks, which posted their biggest monthly fall since the initial COVID-19 lockdowns in March 2020.

In the United States, the Dow Jones Industrial Average fell 652.22 points, or 1.86%, to 34,483.72, the S&P 500 lost 88.26 points, or 1.90%, to 4,567.01, and the Nasdaq Composite dropped 245.14 points, or 1.55%, to 15,537.69. [.N]

Benchmark 10-year notes last rose 26/32 in price 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%.

The Japanese yen - traditionally viewed as 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 [O/R]

Stocks, oil slide as Omicron worries push investors to safe havens
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (34)
Rob Chan
Rob Chan Nov 30, 2021 2:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market going down due to new strain is all hype. Big players need news to make big money.We survived when there was no vaccine and the market went up like anything. Will it sink now when there are so many vaccines ! it's the way institutions make money.
Paul Dunne
Paul Dunne Nov 30, 2021 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For best investment advice, read The Lancet. For the best medical advice, read the comments on this site!
Joe Fred
Joe Fred Nov 30, 2021 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Moderna product sales from its coronavirus vaccine accounted for $4.81 billion of Moderna’s $4.97 billion in revenue in the third quarter. You think they have some financial interest in keeping everyone in panic mode. I’m not speculating in what will happen, but a milder, more transmissible virus is what happened to the Spanish flu in the early 1900’s which effectively ended that pandemic. Hopefully this is what is happening. Moderna’s 2019 3rd quarter revenue was $17 million.
Johann de Jager
Wondering Nov 30, 2021 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Apparently they found the symptoms to be mild. Maybe this is the variant that gives everyone some food natural immunity.
Joe Fred
Joe Fred Nov 30, 2021 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I just heard a doctor talking about this very thing. He said he had done a lot of research on the Spanish flu that happened in 1918. That virus mutated in about 2 years to a form that was more transmissable but the symptoms became much milder and in another year the Spanish flu pandemic was over. Hopefully this happens with this.
Miriam Morkhul
Miriam Morkhul Nov 30, 2021 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lab made viruses probably have endless variations. You can theoratically be a permanent guienna *****for endless vaccines and booster shots.
Matthew Price
Matthew Price Nov 30, 2021 5:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
more propaganda
jason xx
jason xx Nov 30, 2021 5:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
cancel taper, in fact ratchet up buying
Jamie An
Jamie An Nov 30, 2021 4:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bloomburg TV reports only negative news and looks like eager to market panic. I wanna know their trading history, bloomburg and blackrock
Herd Bull
Herd Bull Nov 30, 2021 3:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
CEO putting in the bid for more government funding. If he would have said what we have now will work fine then there is no reason to give them billions more for new strain. What a dick move for the rest of the market and Moderna investors
Aleksandr Radchenko
Aleksandr Radchenko Nov 30, 2021 3:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
they closed air traffic so that this new variant of the virus would not supplant the previous variant. this variant has mutated in a person with AIDS, so it is very mild. otherwise, he would have killed the host. so this option is like a common cold. if this variant of the virus spreads, the pandemic will end. that is why whales are now trying to reduce the value of shares, and immediately buy them cheaper. pharmaceutical companies do not want an end to the pandemic because they have to sell a lot of paxlovid and molnupiravir. don't yawn or panic, this war will be over soon.
Raja Tampan
Raja Tampan Nov 30, 2021 2:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So is there still any Super Tuesday?
Roger Boixasa
Roger Boixasa Nov 30, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They just want to sell more vaccines
Paurav Shah
Paurav Shah Nov 30, 2021 1:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ploy to sell new vaccine to world.
Mohd Izhar Muslim
Mohd Izhar Muslim Nov 30, 2021 1:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Success greatest information. Thanks 👍
Erski Gumby
SB20 Nov 30, 2021 1:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
MRNA stock was tanking. They needed sometiing to pump it back up. ROFL
Jerome NY
Jeff_Musk Nov 30, 2021 1:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
To sell new vaccine a lot haha
Jack Sharma
Jack007 Nov 30, 2021 1:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
moderna ceo bought a lot of PE's in morning. spread fake news and earn big.
Sien Huat Hii
Sien Huat Hii Nov 30, 2021 1:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
he should be jail for life
LT LT
LT LT Nov 30, 2021 1:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
JOHANNESBURG, Nov 28 (Reuters) - A South African doctor who was one of the first to suspect a different coronavirus strain among patients said on Sunday that symptoms of the Omicron variant were so far mild and could be treated at home. Dr. Angelique Coetzee, a private practitioner and chair of South African Medical Association, told Reuters that on Nov. 18 she noticed seven patients at her clinic who had symptoms different from the dominant Delta variant, albeit "very mild". Read the full story : https://www.reuters.com/world/africa/safrican-doctor-says-patients-with-omicron-variant-have-very-mild-symptoms-2021-11-28/ Don't be fooled by false experts.
Invest Right
Invest Right Nov 30, 2021 1:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The first two doses were the product, the lifetime boosters are the subscription service. Who could've predicted the good people in Big Pharma could do such a thing?
Khwarizmi Algebra
Khwarizmi Algebra Nov 30, 2021 1:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mild symptoms to even non vaccinated individuals. Not a single case reported as sever. Does that even need vaccine?
Fong SH
Fong SH Nov 30, 2021 1:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just to refresh, HSI was about 3000++ during 1991 Iraqi war, which I was still a trader, today, I am 62, still a part time trader. Today, HSI is over 20,000, with high of 31000 and now standing at 23000++, it's only 8000 away from historical high. DJI historical high is 36,565 which is only recently, whereas HSI high was years back. does that answer your question & confidence? DJI is running mostly on debts, whereas HSI is running mainly on reserves. World largest USD Bonds' holders - China & Japan - can you imagine if they sell? China had reduced USD Bonds over the past few years till now, switching to holding Gold, do you think why China did that move? Good luck, stay safe and healthy when outdoors, wear a mask please.
LT LT
LT LT Nov 30, 2021 1:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So what you are CEO of Moderna?  Doesn't make you an expert in Omicon.  Scientists and doctors are  working on the findings.  Stop creating all these fear and let people carry on with their lives as normal as possible.  We will face it when the findings are confirmed.
ismail chhaya
ismail chhaya Nov 30, 2021 1:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
moderna vaccine ceo wants more money.... current vaccine is not effective...buy new from us
Bang Bang
Bang Bang Nov 30, 2021 1:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake news!!!!
Jason Lee
Jason Lee Nov 30, 2021 1:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US market is a joke
James Pattison
James Pattison Nov 30, 2021 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This news is fake market manipulation… omicron symptoms are the least severe of all
Mikhail Shikhmuradov
Mikhail Shikhmuradov Nov 30, 2021 1:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
💯
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email