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European Stock Futures Sharply Lower; Omicron Fears Resurface

Stock MarketsNov 30, 2021 01:55AM ET
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© Reuters

By Peter Nurse 

Investing.com - European stock markets are expected to open sharply lower Tuesday amid fresh concerns about the effectiveness of the current vaccines in combating the newly discovered omicron Covid variant.

At 2 AM ET (0700 GMT), the DAX futures contract in Germany traded 1.8% lower, CAC 40 futures in France dropped 1.7% and the FTSE 100 futures contract in the U.K. fell 1.2%.

Global stock markets had bounced Monday after Friday’s rout as investors reassessed the likely damage caused by the omicron variant, helped by South African health experts indicating that the symptoms have been mild so far.

However, sentiment changed abruptly early Tuesday after Moderna (NASDAQ:MRNA) chief Stephane Bancel suggested in a Financial Times article that the existing vaccines would struggle to cope with the omicron variant, predicting a ‘material drop’ in their effectiveness.

He also warned that it would take months before the drugmakers can manufacture the new variant-specific injections in sufficient quantities to be effective.

Moderna, along with Pfizer (NYSE:PFE) and AstraZeneca (NASDAQ:AZN), have supplied most of the developed world with the vaccines to combat the Covid-19 virus.

The omicron variant has now spread to more than a dozen countries, prompting the introduction of new travel curbs. The World Health Organization said on Monday that the modification posed a very high risk of infection surges, although the UN body added it is still unclear how severe the new variant is.

There was some positive news for investors to digest Tuesday after China recorded a surprise growth in factory activity in November, the first in three months, as a surge in raw material prices and power rationing both eased.

The country’s manufacturing purchasing managers index came in at 50.1 in November, above the previous month’s 49.2 figure, while the non-manufacturing PMI was at 52.3, higher than the previous month’s 52.4 figure. 

Back in Europe, the main economic release will be the flash Eurozone CPI for November, which is expected to climb to an annual 4.5% from October’s 4.1%, while German unemployment figures for November will also be of interest.

In corporate news, earnings from the likes of EasyJet (LON:EZJ), Greencore (LON:GNC), SAS (ST:SAS) and Volvo Cars (ST:VOLCARb) will be released Tuesday.

Crude prices retreated as the omicron concerns returned, with traders fretting about fresh lockdowns and the associated hit to global demand. 

That said, with a further hit to demand likely, expectations are growing that the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, will put on hold the plans to add 400,000 barrels a day in January when it meets later in the week.

By 2 AM ET, U.S. crude futures traded 3.4% lower at $67.57 a barrel, having climbed 2.6% on Monday, while the Brent contract fell 3.6% to $70.57, after rising 1% during the previous session.

Additionally, gold futures rose 0.6% to $1,795.35/oz, while EUR/USD traded 0.3% higher at 1.1325.

 

European Stock Futures Sharply Lower; Omicron Fears Resurface
 

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Comments (6)
Anderson Oliveira
Anderson Oliveira Nov 30, 2021 3:17AM ET
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In fact, News agencies are market makers too
Mark Stallone
Mark Stallone Nov 30, 2021 3:04AM ET
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Don't worry. Biden and Kam Kam got this
Stock Trading
Stock Trading Nov 30, 2021 3:00AM ET
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Focus should be if symptoms are severe( as of now extremely mild) and how far containment be effective against to be contagious.
William Bailey
William Bailey Nov 30, 2021 2:59AM ET
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Scam . Didnt here printer come on for Delta …. Powell wamts to crank it up again!!!
Craig Self
Craig Self Nov 30, 2021 2:37AM ET
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CEO becomes a scientist, media the virus!
Jack Sharma
Jack007 Nov 30, 2021 2:37AM ET
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rightly said mate
Chris Sundo
Chris Sundo Nov 30, 2021 2:31AM ET
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Exactly. After POTUS felt like Americans are sheep who will relax upon a lullaby. I only read the title 'Nothing to panic over'.  Sure! -- If I were Prez however, I would speak the truth carefully so every listener gets the feel of how serious one's anti-Covid techniques need to be practiced. I would say: 'We've been practicing the basic 4 anti-Covid techniques for over 21 months now (minimum 2-meter social distancing, masks properly worn, Hand-washing, and vaccination) and with that alone we can pull ahead and protect against a new strain. However, from what I hear, and it's still being checked, the new strain has 34% more spikes for a more thorough job of infection and it is air-borne rather than via droplets like its predecessor. So, the new strain is estimated to be 5x more infectious than Delta and therefore, Dear American fellows we need to practice the 4 anti-Covid techniques AT LEAST 5x as hard.
 
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