NEW YORK: Global stock benchmarks and oil prices fell sharply on Tuesday after drugmaker Moderna warned that existing vaccines are unlikely to be effective against the new coronavirus variant, which has sent investors looking for safer drugs such as government bonds and the yen. left in search. Inspired to pile on the property.
“I think there is no world where (effectiveness) is the same level,” Stephen Bansell, Moderna’s chief executive, told the Financial Times in an interview.
“I think it’s going to be a physical decline. I just don’t know how much because we need to wait for the data. But the scientists I’ve talked to… are like, ‘It’s not going to be good, ‘” said Bansal.
Bansal had earlier said on CNBC that there should be more clarity in about two weeks on the efficacy of the COVID-19 vaccines against the Omicron variants, but that it is time to start shipping the newly designed vaccine designed for it. is not ready. It may take months.
“It’s not good news, and it’s coming from someone who should know,” said Joe Caperso, currency strategist at the Commonwealth Bank of Australia. “Markets have reacted exactly the way you’d expect them to.”
Federal Reserve Chairman Jerome Powell told Congress that the deficit had intensified that high inflation would persist through the middle of next year, leaving the central bank to discuss “potential” support for the economy last year. Was discussing accelerating the pace of the asset-purchase program launched for the pandemic.
“We’ve said for a long time that the Fed is the ultimate master of ‘transient’ characterization and the chairman’s decision to move beyond that is a decidedly swift move,” said Ian Lingen, head of US rate strategy at BMO Capital Markets.
Globally, the gauge of MSCI shares fell 1.20% after widening losses in Europe and Asia. There are concerns the new version will cause more travel restrictions to hit European travel and leisure stocks, which posted their biggest monthly fall since the initial COVID-19 lockdown in March 2020.
In the United States, the Dow Jones Industrial Average fell 539.44 points, or 1.54%, to 34,596.5, the S&P 500 fell 68.26 points, or 1.47%, to 4,587.01, and the Nasdaq Composite fell 231.49 points, or 1.47%, to 15,551.34. [.N]
The price of the benchmark 10-year notes last increased by 25/32 to 1.446% from 1.529% late on Monday.
The Omicron concerns sent returns on 10-year German bonds – considered one of the world’s safest assets – to the lowest in just over a week at -0.345%.
The Japanese yen – traditionally seen as a safe harbor due to its role as a funding currency – was near its highest level of the month.
US crude was recently down 7.03% at $65.03 a barrel and Brent was down 4.28% at $70.30. [O/R]
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